(Alliance News) - Supermarket Income REIT PLC announced on Wednesday it had acquired two supermarkets, one in Tyne and Wear and the other in South Wales, for a total purchase price of GBP55.1 million.
The London-based real estate investment company said the purchase reflected a combined initial net yield of 5.3%.
The first property, located in Tyne and Wear is a J Sainsbury PLC supermarket comprising of a 83,800 square foot net sales area, a 24-pump petrol filling station, and online fulfilment dock. The store has been acquired with an unexpired lease term of 34 years with seven-yearly, upwards only, retail prices index-linked rent reviews.
Supermarket Income added that the acquisition also includes two quick service restaurant units operated by KFC and Tim Hortons Inc co-located on the same site.
The second property, located in South Wales, is an Asa Stores Ltd supermarket comprising of a 81,600 square foot net sales area. It is has been acquired with an unexpired lease term of 10 years with 5-yearly, upwards only, open market rent reviews.
Supermarket Income explained that the store will form a key part of Asda's online fulfilment operations across the region.
In addition to the acquisitions, Supermarket Income said it had arranged a GBP136.5 million increase to its revolving credit facility with Barclays PLC and the Royal Bank of Canada.
Following the increase, the total size of the facility is GBP250.2 million with a further GBP49.8 million accordion option.
Shares in Supermarket Income were up 0.6% at 122.28 pence on Wednesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Barclays (BARC)
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Sainsbury's (SBRY)