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Supermarket Income REIT PLC on Monday announced it has bought a 20 acre site in South West England's largest city.
The supermarket-focused real estate investment trust said it has acquired a site housing a Tesco PLC supermarket, an Iceland Foods warehouse, and ‘complementary non-grocery units’ in Bradley Stoke, Bristol. It is purchasing the site from CBRE Investment Management.
The total consideration is £84.0 million, excluding costs, which reflects a net initial yield of 5.6%.
‘The 19.8 acre site includes a 74,717 square feet net sales area Tesco supermarket with a 16-pump petrol filling station and 925 car parking spaces. The store is an online hub for Tesco, operating 20 home delivery vans and a dedicated Click & Collect facility,’ the investment trust explained.
Shares in Supermarket Income were down 1.9% to 102.50 pence each in London on Monday morning.
The Tesco store has an unexpired lease term of 14 years. The annual rent reviews are upwards-only and linked to the retail price index, with a 3.5% cap and 0.0% floor.
The complementary units include tenants such as Boots, Greggs PLC, Costa Coffee and Pets at Home Group PLC.
‘We are very pleased to be adding this top trading omnichannel Tesco store to the portfolio together with the complementary essential retailers at this site,’ said Ben Green, director of the trust's investment adviser, Atrato Capital Ltd.
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