Supermarket Income buys £74m Waitrose portfolio

Supermarket Income REIT has bought six Waitrose & Partners supermarkets for £74.1m, in a sale-and-leaseback. Excluding purchase costs, the sum represents a net initial yield of 4.4%. The portfolio comprises an average gross internal area of 32,000 sq ft. The stores are let to Waitrose on new 20-year leases, with a tenant-only break option in year 15. These are subject to five-yearly, upward-only, CPIH-linked rent reviews, subject to a 3% cap and 1% floor.  The stores also form a key part of Waitrose’s UK online grocery fulfilment network. Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification.” Full store list: • Waitrose Eastbourne, High Street, BN21 1HR • Waitrose Edenbridge, Mont St Aignan Way, TN8 5LN • Waitrose Ely, Bray’s Lane, CB7 4QJ • Waitrose Oundle, 66 East Road, PE8 4BZ • Waitrose Sandbach, Flat Lane, CW11 4BE • Waitrose Sudbury, Station Road, CO10 2SS To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette