Supermarket Income REIT buys Cheltenham Sainsbury's
Supermarket real estate investor Supermarket Income REIT announced the acquisition of a Sainsbury's store in Cheltenham, Gloucestershire, from Legal & General on Friday, for £60.4m excluding acquisition costs, reflecting a net initial yield of 5.25%.
The London-listed specialist fund said the site was originally developed in the 1980s, and extensively refurbished and extended in 2007.
It said Sainsbury's had a “long history” of trading from the “prominent” seven-acre site.
The supermarket comprised 62,000 square feet net sales area with a 12-pump petrol filling station, and more than 390 parking spaces.
Supermarket Income REIT said the store had multiple purpose-built distribution docks, and supported Sainsbury's online grocery fulfilment in the local area.
It was being acquired with an unexpired lease term of 13 years, with five-yearly, upward-only, RPI-linked rent reviews, subject to a cap and floor.
“With strong fundamentals, this Sainsbury's supermarket is an excellent addition to our growing portfolio of omnichannel stores and provides further investment diversification,” said Ben Green, director at Supermarket Income REIT’s investment advisor, Atrato Capital.