LONDON: Supermarket Income REIT plc (LSE: SUPR) said Monday it has acquired a top-performing Tesco supermarket in Ashford, Kent, for £54.1 million, excluding acquisition costs. The deal reflects a net initial yield of 7.0%.
The 93,000-square-foot store includes a petrol filling station and sits on an 8.2-acre site. Tesco has traded from the location for more than 30 years, operating the store as both a consumer retail site and an online fulfillment hub, including 14 delivery vans and Click & Collect services.
The property is being acquired with nine years remaining on the lease, which includes annual RPI-linked rent reviews capped at 5% and floored at 0%.
Supermarket Income REIT said the acquisition marks its first transaction following the formation of its strategic joint venture with Blue Owl Capital-managed funds. The company aims to redeploy capital into high-yielding investments across a range of store formats and operators.
“This acquisition will make a material contribution to our earnings from day one,” said Rob Abraham, CEO of Supermarket Income REIT. “We continue to focus on scaling the business while delivering sustainable earnings growth for our shareholders.”