Supermarket REIT buys Sheffield Tesco for £73m

Supermarket Income REIT has bought a Tesco supermarket in Sheffield, Yorkshire, for £73.2m – a 4.5% net initial yield. The store was developed for Tesco in 2011 and occupies a seven-acre site comprising an 88,000 sq ft net supermarket, 12-pump petrol filling station and 640 car parking spaces. The store serves as a hub for omnichannel fulfilment in the region, operating 14 home-delivery vans and click & collect functionality. The property is being acquired with an unexpired lease term of 17 years, with annual upwards-only, RPI-linked rent reviews (subject to a 4% cap and 0% floor). Ben Green, director at Atrato Capital, the investment adviser to Supermarket Income REIT, said: “This latest acquisition further strengthens Supermarket Income REIT’s portfolio of omnichannel supermarkets, which represent the future model for grocery in the UK. The store has attractive underlying fundamentals and a lease that is both index-linked and accretive to the portfolio in respect of its unexpired lease term.” Discover which agents are transacting the most retail space across the UK regions >>  To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews