LONDON (Alliance News) - Supermarket Income REIT PLC said on Thursday it has acquired a Morrisons supermarket in Sheffield from Opus North for GBP51.7 million, reflecting a net initial yield of 4.9%.
Located on an 8.4 acre site in the Hillsborough Barracks, the property comprises a 113,000 square feet supermarket, 860 parking spaces and a 12 pump petrol station.
The property has an unexpired lease term of 21 years with five yearly, upward only inflation-linked rent reviews.
In addition, the supermarket real estate investor has agreed to a five year interest-only loan facility with Bayerische Landbank, worth GBP52.1 million and secured against the Morrisons supermarket in Sheffield and the Sainsbury's supermarket in Ashford.
"This Morrisons supermarket is an excellent addition to our growing portfolio. The property benefits from strong fundamentals, attractive lease terms and provides further tenant diversification. This purchase completes our asset acquisition plan, which we set out at the time of our GBP65 million capital raise in May," said Ben Green, director of investment advisor Atrato Capital.
Shares in Supermarket Income REIT remained broadly flat at 102.47 pence on Thursday.
Supermarket Income (SUPR)