Business
ACQUISITION OF TESCO EXTRA IN SCOTLAND FOR £50M
ACQUISITION OF TESCO EXTRA IN SCOTLAND FOR £50M.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 8580Z Supermarket Income REIT PLC 20 December 2017 \n\n Supermarket Income REIT\n(the \"Company\")\n \n \nACQUISITION OF TESCO EXTRA IN SCOTLAND FOR £50 MILLION \n \nSupermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces that it has acquired a Tesco Extra supermarket in the North Lanarkshire town of Cumbernauld, Scotland, from Legal and General for £50 million (net of acquisition costs), reflecting a net initial yield of 5.5% after the next agreed RPI-linked rent review in March 2018.\n \nThe 9.5-acre site occupies a town centre location and is equidistant from Glasgow and Sterling. It comprises the 117,000 square feet Tesco Extra store, approximately 570 parking spaces and a 12-pump filling station. The store is strategically located for online fulfilment given the excellent motorway and road connections. \n \nIt is being acquired with an unexpired lease term of 23 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on full repairing and insuring terms. The purchase has been funded out of the £20 million equity placing issued on the 17 November and from the Company's Revolving Credit Facility. \n \nBen Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: \"This store has an impressive trading record on site and plays an important role in Tesco's Scottish online fulfilment network.\n \n\"This investment is a strong addition to our growing portfolio, increasing both the weighted average unexpired lease term and net initial yield of the Company's portfolio\".\n \n \nFor further information, please contact:\n \nAtrato Capital Limited +44 (0)20 3790 8087\nBen Green\nSteve Windsor\nSteve Noble\n \nStifel Nicolaus Europe Limited +44 (0)20 7710 7600\nMark Young\nNeil Winward\nTom Yeadon \n \n Tavistock &n...