Supermarket Income REIT buys Morrisons store

Supermarket Income REIT has bought a Morrisons supermarket in Telford from Santander Trustees for £14.3m.  The deal for the four-acre site, which is located in the centre of the new 3,550-home Lawley Village development, reflects a net initial yield of 5%. The 27,000 sq ft shopping centre also includes 220-space car park and an online click-and-collect facility.  It has been acquired with an unexpired lease term of 17 years and a break option in year 12. The REIT has also increased its debt facilities with Bayerische Landesbank by £34.8m. This compromises a £27.5m five-year tranche and a £7.3m tranche, and the funds will be used to finance recently acquired stores.  The REIT’s investment advisor, Atrato Capital director Ben Green, said: “This transaction represents an opportunity to acquire a modern Morrisons supermarket that is ideally located to benefit from the growing catchment at the centre of a significant 3,550-home development.  “We are also pleased to extend our relationship with BLB, a key funding partner for us as we grow.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette