14th Jul 2025 09:57
(Correcting that Supermarket Income is not buying the supermarket property from Tesco.)
(Alliance News) - Supermarket Income REIT PLC on Monday said it has acquired a property housing a Tesco PLC supermarket in Ashford, Kent for GBP54.1 million.
The London-based real estate investment trust for property leased to grocery retailers said the purchase price for the 93,000-square-foot property reflects an "attractive" net initial yield of 7.0%.
The store is being acquired with an unexpired lease term of nine years, with annual RPI-linked rent reviews, it said.
The acquisition represents the first transaction for the company as it redeploys the proceeds arising from the formation of its strategic joint venture with funds managed by Blue Owl Capital, Supermarket Income said.
Late in April, Supermarket Income said it had formed a strategic joint venture with funds managed by Blue Owl Capital.
The joint venture provides a platform for further growth, seeking to acquire additional supermarket assets, with a view to grow the assets of the joint venture up to GBP1 billion over the coming years, the company said at the time.
"I'm very pleased that we have begun redeploying the proceeds arising from our recent joint venture, acquiring this top trading Tesco supermarket at an attractive price, which will make a material contribution to our earnings from day one," Supermarket Income Chief Executive Officer Rob Abraham said.
Supermarket Income said on Monday it sees a number of complementary routes to help drive growth, scale and liquidity while maintaining sector focus.
"This may include increasing the tenant weighting to operators for which the company currently has limited or no exposure to, and across a broader range of store formats, whilst maintaining the quality of the company's income profile," the group said.
Shares in Supermarket Income REIT were 2.0% higher to 82.30 pence each in London on Monday morning. In Johannesburg, they were up 1.2% to ZAR19.92.
By Artwell Dlamini, Alliance News senior reporter South Africa
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