LONDON, UK: Supermarket Income REIT bought a Sainsbury’s supermarket in Cannock, Staffordshire, from a client of CBRE Investment Management for £75.8 million (excluding acquisition costs), representing a net initial yield of 4.0%.
The Sainsbury’s store opened in 1997 and was extensively refurbished in 2011. This 9.1 acre site comprises a 73,000 sq ft net sales area supermarket, a 12-pump petrol filling station and 490 car parking spaces. The store has a purpose-built online fulfilment centre which operates 12 vans, forming a key part of Sainsbury’s online grocery network across the region.
The asset is being acquired with an unexpired lease term of 15 years, with five-yearly, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and 1.0% floor).
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said: “This Sainsbury’s in Cannock is an excellent addition to our growing portfolio of high-quality omnichannel stores and was funded using proceeds from the recently oversubscribed equity issue. The property has strong trading fundamentals and forms a key part of Sainsbury’s online fulfilment network.”