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Real estate investment firm Supermarket Income REIT has purchased a Tesco Extra shed and an Aldi store from British Land for £63m.
The Tesco store was originally developed in the 1980s and subsequently extended and refurbished in 2007 to a 97,000 sq ft net sales area Extra.
The site in the Beaumont Leys suburb of Leicester has parking for more than 700 vehicles and a 12-pump petrol filling station. In addition to the supermarket, the store also features a purpose-built online fulfilment facility, supporting grocery deliveries across the catchment area.
It is being acquired with an unexpired lease term of seven years, with five-yearly, upwards only, open market rent reviews.
The Aldi supermarket is opening this year and extends to 14,800 sq ft of net sales area. It has been acquired with an unexpired lease term of 25 years.
Adjoining the Tesco Extra and the Aldi supermarket is a parade of units comprising 33,000 sq ft net sales area, predominantly occupied by Costa, Greggs, WH Smith and Pets at Home.
The total consideration is £63.4m, excluding acquisition costs, reflecting a combined net initial yield of 6.4%.
The site is adjacent to Fletcher Shopping Mall, which will be retained as a separate interest by British Land.
Ben Green, director of Atrato Capital, the investment advisor to Supermarket Income REIT, said: “We are pleased to have acquired a further omnichannel Tesco Extra, with this asset operating as a key online grocery fulfilment hub for Tesco.
“The Aldi acquisition provides further tenant diversification for the portfolio. Furthermore, we believe this site offers valuable asset management opportunities.”
Morning update
It’s a quiet start to the week on the markets for food and drink, but the FTSE 100 has started on the front foot once again, up 0.7% to 6,357.52pts.
Bakkavor has had a flying start to the week, climbing 5.7% to 78p, Marston’s follows a strong week with an early jump of 3.5% to 66.6p, C&C Group is up 2.7% to 192.9p and Nichols is 2.5% higher at 1,230p.
Ocado is one of the food and drink stocks starting the week in the red, down 1.2% to 2,256p. Reckitt Benckiser is down 1.1% to 6,906p, Hotel Chocolat is down 0.8% to 362p and Greggs is down 0.8% to 1,668p.
This week in the City
It isn’t looking like the busiest week for the world of food and drink but there are still a few key updates scheduled.
First up tomorrow morning, tobacco giant Imperial Brands reports its full-year results. And then around lunch time, Walmart issues its latest quarterly update, including Asda’s performance.
Wednesday brings the latest UK inflation figures, while the ONS updates on retail sales for the past month on Thursday.
There’s interims on Thursday from Naked Wine and the latest GfK consumer confidence index to close the week on Friday.
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