Supermarket Income REIT acquires Sainsbury's supermarket in County Down, Northern Ireland

Supermarket Income REIT , a real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, has acquired a Sainsbury’s supermarket in Bangor, County Down, Northern Ireland, from John Morgan Estates Limited.

Developed in 2011, this prominent 10-acre site comprises a modern 44,000 sq ft net sales area supermarket with 650 parking spaces and an eight-pump petrol filling station. The supermarket has been acquired with an unexpired lease term of 15 years with five-yearly rent reviews subject to 2 per cent fixed annually compounded uplifts.
 
The site occupies a key location on the West Circular Corridor connecting directly to Belfast City and Newtownards. The acquisition includes an adjoining Homebase unit with a net sales area of 33,000 sq ft and an unexpired lease term of 10 years with 5-yearly, open market rent reviews.
 
The total consideration for the site is GBP24.8 million (excluding acquisition costs) representing a combined net initial yield of 6.6 per cent.
 
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, says: “This Sainsbury’s store, which has strong trading fundamentals and attractive lease terms, is a welcome addition to Supermarket Income REIT’s portfolio. This income accretive acquisition is our first in Northern Ireland, adding further geographical diversification to our growing portfolio of UK supermarkets.”
 

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