Supermarket Income REIT has acquired a Sainsbury’s supermarket in Huddersfield for £49.7m.
The 113,348 sq ft store joins the real estate investment trust’s omnichannel-focused portfolio of more than 70 supermarkets across the country, including Tesco, Sainsbury’s, Asda and Morrisons sites.
Supermarket Income REIT said the latest Sainsbury’s acquisition was a top quartile-performing food store on an 8.5-acre site where the retailer had traded for over 30 years, including a forecourt. It said the purchase price reflected an initial yield of 7.6%.
The site – acquired with an unexpired lease term of 11 years with annual RPI-linked rent reviews – also includes an online fulfilment hub with 12 home delivery vans and click & collect services.
Supermarket Income REIT said it was seeing heightened levels of competition for assets, providing confidence in property valuations.
It said the Sainsbury’s purchase was a continuation of its strategy to grow earnings through a combination of accretive acquisitions, capital recycling and cost savings, thereby supporting growing dividends to shareholders.
“The team has been, and remains, incredibly active across a range of strategic and operational developments, all driven by our focus on delivering value for shareholders,” said Ben Green, principal of Atrato Capital, the investment adviser to Supermarket Income REIT.
“We are also very pleased to announce this UK acquisition,” he added. “We remain highly focused on driving returns and we continue to explore all avenues to deliver value for shareholders.”
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