Supermarket Income REIT has continued to deploy the proceeds of it's recent equity raise with an acquisition of a portfolio of Waitrose supermarkets via a sale and leaseback transaction with Waitrose & Partners for £74.1 million. In April SUPR successfully raised £140m in a substantially oversubscribed share issuance.
The portfolio comprises six freehold supermarkets with 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 and are subject to five-yearly, upward-only, CPIH-linked rent reviews (subject to a 3% cap and 1% floor).
The stores form a key part of Waitrose's UK online grocery fulfilment network and offer home delivery and/or click and collect.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "We are very pleased with this transaction. All of the stores have an impressive trading record and are complementary to our existing portfolio, providing further tenant and geographic diversification"
The full store list is as follows:
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 (1)
Waitrose Sandbach, Flat Lane, CW11 4BE
Waitrose Sudbury, Station Road, CO10 2SS