Supermarket Income acquires four supermarkets in £82.9 deal

The company has also arranged a new £412.1m unsecured credit facility.

Supermarket Income REIT plc, a real estate investment trust, has announced it has acquired two supermarket sites for a total purchase price of £82.9m.

The company has purchased a Tesco superstore, Marks and Spencer Foodhall and an Iceland in Chineham, Basingstoke, and an Asda supermarket in Carcroft, Doncaster.

The 18.7 acre Chineham site has been acquired from Tellon Capital and comprises a 60,938 sq ft net sales area Tesco superstore with a large omnichannel operation, a 16-pump petrol filling station and 878 parking spaces. 

The Tesco operates 13 home delivery vans and a click and collect facility in the car park. The Tesco store has a remaining lease term of 12 years and is subject to 5-yearly open market rent reviews. The property also includes a Marks and Spencer Foodhall, and Iceland. 

The Asda store in Carcroft comprises a 45,813 sq ft net sales area omnichannel supermarket which sits on a 5.2 acre site and includes 340 parking spaces. Asda has operated from the site since the 1970s with the store being fully refurbished in 2019. 

The site has a click and collect site. The property was acquired via a direct sale and leaseback transaction with Asda under a new 100 year lease.

The company has also arranged a new £412.1m unsecured credit facility with a bank syndicate comprising Barclays, Royal Bank of Canada, Wells Fargo and Royal Bank of Scotland International.

The new unsecured facility consists of three sections, £250m five year revolving credit facility, £100m three year term loan and a £62.1m 18-month term loan.

The new unsecured facility will be used in part to refinance £255m of existing secured commitments in addition to providing further debt capital to continue to fund the growth of the company.

Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT, said:  ”These acquisitions further strengthen and complement SUPR’s portfolio. Chineham Park was a rare opportunity to acquire a Tesco, an M&S Foodhall and an Iceland in a single transaction. The Asda acquisition represents the longest duration asset in the portfolio with a very long 100 year lease

“The new unsecured facility is a significant milestone for SUPR, the scale and quality of the portfolio now enabling the Company to finance on an unsecured basis. We are delighted with the level of financing support received from our existing and new relationship banks, affirming the robust nature of the grocery sector.”

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