Supermarket Income REIT PLC ACQUISITION OF TESCO SUPERSTORE FOR £28.5 MILLION (3456O)

TIDMSUPR

RNS Number : 3456O

Supermarket Income REIT PLC

18 August 2017

Supermarket Income REIT plc

("Supermarket Income REIT" or "the Company")

18 August 2017

ACQUISITION OF TESCO SUPERSTORE, BRISTOL, FOR GBP28.5 MILLION

Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces that it has acquired the freehold of a Tesco Superstore, Lime Trees Road, Bristol, from a client of Aberdeen Asset Management for GBP28.5 million (net of acquisition costs), reflecting a net initial yield of 4.9%.

The purchase has been funded out of the equity proceeds of the IPO, with senior debt finance expected to be introduced in the near term.

The store comprises 55,000 sq ft on a 5.7-acre site with more than 450 parking spaces. It is being acquired with an unexpired lease term of approximately 13.5 years, which is subject to annual, upward-only, RPI-linked rent reviews with a cap at 4% and a floor at zero and on full repairing and insuring terms.

Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "We are delighted to announce our second property, with GBP72 million now invested since our IPO last month. This Tesco Superstore is situated in a prime Bristol location and has a long history of strong trading performance. This investment will deliver an attractive inflation linked income stream and offers excellent asset upside potential over the longer term."

For further information, please contact:

   Atrato Capital Limited                                  [phone] 

Ben Green

Steve Windsor

Steve Noble

    Stifel Nicolaus Europe Limited                 [phone] 

Mark Young

Neil Winward

Tom Yeadon

    Tavistock                                                       [phone] 

Jeremy Carey

James Whitmore

James Verstringhe

NOTES TO EDITORS:

Supermarket Income REIT plc listed on the specialist fund segment of the main market of the London Stock Exchange in July 2017. Its objective is to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income, from institutional grade tenants of significant size and the potential for capital growth through active asset management opportunities. Atrato Capital is the Company's Investment Adviser.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 18, 2017 02:00 ET (06:00 GMT)