“The property has strong underlying fundamentals and forms a key part of the Tesco online fulfilment network.”
() acquired a Tesco-occupied supermarket in Colchester, Essex from the Standard Life Investments Long Lease Fund for £63mln.
Excluding acquisition costs, the purchase price represents a net initial yield of 4.5%, the REIT said.
The site was refurbished in 2011, it added, and comprises a 54,300 sq ft net sales area supermarket, a 16-pump petrol filling station and 570 parking spaces.
The store has several online fulfilment distribution docks supporting Tesco’s online grocery business across the region.
It is being acquired with an unexpired lease term of 19 years, with annual, upwards only, inflation-linked rent reviews.
Ben Green, director of Atrato Capital, SUPR’s adviser said: “This Tesco store is a great addition to our growing portfolio of omnichannel stores with an attractive, long, index-linked lease in excess of 19 years.
“The property has strong underlying fundamentals and forms a key part of the Tesco online fulfilment network.”
Read More: Supermarket Income REIT PLC acquires Tesco-occupied site in Colchester