Supermarket Income REIT acquires Tesco store in Bracknell
Supermarket Income REIT has acquired a Tesco supermarket in Bracknell from a client of CBRE Global Investors for GBP39.5 million (excluding acquisition costs), reflecting a net initial yield of 5.7 per cent.
Developed in the early 1990’s, Tesco has a long history of trading from this prominent 7.3-acre site which comprises a purpose-built food store and a 400-space surface car park. The store has several purpose-built online distribution docks, supporting Tesco’s online grocery business across the region. The asset is being acquired with an unexpired lease term of 10 years with annual, upward only, RPI-linked rent reviews (subject to a 4 per cent cap and 0 per cent floor). The acquisition will be financed via a GBP40 million increase of the GBP100 million RCF facility provided by HSBC. The increase will be priced at a 1.75 per cent margin over three-month Libor.
The Company has also published an updated Key Information Document (KID) in accordance with the requirements of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation.
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