Supermarket Income REIT acquires Sainsbury’s in Cheltenham

Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces the acquisition of a Sainsbury’s supermarket in Cheltenham, Gloucestershire, from Legal & General for GBP60.4 million (excluding acquisition costs), reflecting a net initial yield of 5.25 per cent.

Originally developed in the 1980s, the store was extensively refurbished and extended in 2007.  Sainsbury’s has a long history of trading from this prominent seven-acre site.
The supermarket comprises 62,000 square feet net sales area with a 12-pump petrol filling station and more than 390 parking spaces. The store has multiple purpose-built distribution docks and supports Sainsbury’s online grocery fulfilment in the local area.  It is being acquired with an unexpired lease term of 13 years with five-yearly, upward-only, RPI-linked rent reviews (subject to a cap and floor).
Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, says:
"With strong fundamentals, this Sainsbury's supermarket is an excellent addition to our growing portfolio of omnichannel stores and provides further investment diversification.”