Supermarket Income checks out £34.7m Stoke Tesco acquisition

Supermarket Income REIT has completed the acquisition of a Tesco supermarket in Stoke-on-Trent for £34.7m, reflecting a net initial yield of 7.5%.

Constructed in 1994, the 54,451 sq ft net sales area supermarket sits on a 8.7 acre site and is supplemented by a petrol filling station, also included in the acquisition. The store support’s Tesco’s online operations through both home delivery and click-and-collect services.

The asset is being acquired with an unexpired lease term of 11 years, and is subject to annual inflation-linked rent reviews.

The acquisition has been funded through the drawdown of Supermarket Income REIT’s revolving credit facility.

Supermarket Income REIT focuses on investing in grocery stores with an omnichannel offering, fulfilling online and in-person sales. The company’s supermarkets are let to leading UK operators across the country.

Last autumn, the REIT saw its annual rental income reach over £100m, which it said reflected the resilience of the grocery sector.