27th Aug 2019 11:47
(Alliance News) - Supermarket Income REIT PLC on Tuesday said it has acquired a Sainsbury's supermarket in Preston for GBP54.4 million and arranged a new GBP47.6 million term loan facility with Dekabank.
The GBP54.4 million, which excludes transaction costs, reflects a 5.1% net initial yield. The supermarket consists of 78,000 square feet of net sales area with a petrol filling station and 520 parking spaces, plus online fulfilment distribution docks.
The real estate investment trust said the supermarket is being bought with a 22.5 year unexpired lease term and annual, upward-only retail price index-linked rent reviews.
Supermarket Income also has agreed a five-year, interest-only loan with Dekabank. The loans has a fixed rate equal to a 1.35% margin over 3 month LIBOR, equivalent to a total interest cost of 2.0%.
Also included in the facility is a GBP40 million uncommitted accordion option.
The loan is secured against the Sainsbury's in Preston and Supermarket Income's Tesco supermarket in Mansfield which it bought in April.
Ben Green, director of Supermarket Income investment advisor Atrato Capital, said: "This Sainsbury's supermarket is a great addition to our growing portfolio of omnichannel stores. The property has very attractive lease terms, strong fundamentals and provides further diversification to the portfolio.
"We are delighted to have secured Dekabank as a new lender to the group. Our new facility provides us with very competitively-priced, five-year funding with room to grow to support the company's future investment requirements."
Shares in Supermarket Income were up 0.1% at 105.56 pence in London on Tuesday.
Related Shares:
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