abrdn acquires Hertfordshire Morrison’s for £18.9m

abrdn Property Income Trust (API) has completed the purchase of a Morrison’s supermarket in Welwyn Garden City, Hertfordshire for £18.9m.

The investment company, formerly Standard Life Aberdeen, said that due to commercial sensitivities it could not disclose the yield on the transaction but will provide an update in the future.

The 60,000 sq ft supermarket is based on a 5.5 acre site and hosts an eight-pump petrol station.

The purchase was a sale and leaseback, with the supermarket entering into a new 25-year lease with intermittent rent reviews.

Mark Blyth, deputy fund manager of API, said: “We are very pleased to have completed this off-market acquisition within the first quarter of the year.  In addition to the long lease to Morrison’s, we were attracted to the strong-trading history and the dominance of the store in the local market.  The pricing and rent review structure will offer API an attractive income stream that is accretive to dividend cover.”