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(Alliance News) - Supermarket Income REIT PLC on Monday announced its acquisition of a Tesco Extra from Standard Life Pooled Pension Property Fund as well as a new loan facility.
The supermarket real estate investment trust is buying the Tesco Extra in Newmarket, Suffolk, for GBP61.0 million, reflecting a net initial yield of 4.6%.
Supermarket Income REIT Investment Adviser Ben Green said: "This modern Tesco Extra is a great addition to our growing portfolio of omni-channel stores. The property has attractive lease terms, strong fundamentals and is a key online grocery fulfilment hub for Tesco supporting both home delivery and click and collect."
The site comprises a 68,000 square foot net sales area Tesco Extra with a 12-pump petrol filling station, 654 parking spaces, and online fulfilment distribution docks supporting Tesco PLC's online grocery business.
Supermarket Income REIT also announced a new revolving credit facility with Wells Fargo & Co of GBP60.0 million, with an additional GBP100 million uncommitted accordion option. The facility has an initial 5-year term with two one-year extension options.
The facility has a margin of 2.0% above 3-month Libor, which is currently equivalent to a total cost of about 2.1%.
Green added: "We are...delighted to have secured Wells Fargo as a new lender to Supermarket Income REIT. Our new facility provides us with very competitively priced, seven-year funding with room to grow to support the company's future investment requirements"
Supermarket Income REIT shares were down 0.3% at 109.18 pence each midday on Monday in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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