ACQUISITION OF TESCO EXTRA IN SCUNTHORPE FOR £53 M

 Supermarket Income REIT

(the "Company")

ACQUISITION OF TESCO EXTRA IN SCUNTHORPE FOR £53 MILLION  

Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate specialist, announces that it has acquired a Tesco Extra supermarket in the north Lincolnshire town of Scunthorpe, England, from Legal and General Pensions Limited for £53 million (net of acquisition costs), reflecting a net initial yield of 5.1%.

Developed in 2002, the store totals 98,000 sq ft on an 8-acre site with more than 580 parking spaces, an 8-pump filling station and dedicated online fulfilment distribution docks. The store is strategically located to support online fulfilment given the excellent motorway and road connections. The store has a strong trading record on site and is situated adjacent to the Lincolnshire Lakes development, which consists of more than 6,000 new homes.

It is being acquired with an unexpired lease term of 22 years with annual, upward-only, RPI-linked rent reviews (subject to cap and floor) on fully repairing and insuring terms. The purchase has been funded from the proceeds of the £65 million equity placing on 25 May 2018.

Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said:

"We are delighted to continue our track record of rapidly deploying our capital in high-quality, omni-channel supermarkets. This store has an impressive trading record on site and plays an important role in Tesco's online fulfilment network.

"This investment is a strong addition to our growing portfolio, increasing both the weighted average unexpired lease term and net initial yield of the Company's portfolio".

For further information, please contact:

Atrato Capital Limited  +44 (0)20 3790 8087

Ben Green

Steve Windsor

Steve Noble

Stifel Nicolaus Europe Limited  +44 (0)20 7710 7600

Mark Young

Neil Winward

Tom Yeadon

Tavistock  +44 (0)20 7920 3150

Jeremy Carey

James Whitmore

James Verstringhe

NOTES TO EDITORS:

Supermarket Income REIT plc is listed on the London Stock Exchange. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.