By Iain Gilbert
Date: Wednesday 20 Dec 2017
LONDON (ShareCast) - (ShareCast News) - UK-based investment company Supermarket Income REIT has acquired a Tesco Extra supermarket from Legal and General in the North Lanarkshire town of Cumbernauld, Scotland for £50m.
The 9.5-acre site, which occupied a town centre location equidistant from Glasgow and Sterling, was made up of a 117,000 square foot Tesco Extra store, approximately 570 parking spaces and a 12-pump filling station.
The acquisition reflected a net initial yield of 5.5% after the next agreed RPI-linked rent review in March 2018 and came with an unexpired lease term of 23 years with annual, upward only, RPI-linked rent reviews on full repairing and insuring terms.
Supermarket Income REIT funded the acquisition from its £20m equity placing on 17 November and from its revolving credit facility.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said, "This store has an impressive trading record on site and plays an important role in Tesco's Scottish online fulfilment network."
"This investment is a strong addition to our growing portfolio, increasing both the weighted average unexpired lease term and net initial yield of the company's portfolio," he added.
As of 1545 GMT, shares had declined 0.43% to 100.07p.