SUPR adds Melksham and Winchester along side a new loan facility

Updated: Mar 10, 2021

We are very pleased to announce the acquisition of a Sainsbury's supermarket in Melksham and a Waitrose & Partners supermarket in Winchester for £65m.

The Sainsbury's store in Melksham was developed in the 1990's and subsequently extended and refurbished in 2011:

  • 9-acre site,

  • 47,000 sq ft net sales area supermarket,

  • 8-pump petrol filling station,

  • 290 parking spaces,

  • Purpose-built online fulfilment distribution docks, which support Sainsbury's online grocery deliveries across the region,

  • Unexpired lease term of 17 years,

  • Annual, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and a 1.0% floor).

The Waitrose store in Winchester was developed in 2009:

  • 25,500 sq ft net sales area omnichannel supermarket,

  • 180 parking spaces,

  • Unexpired lease term of 24 years,

  • 5-yearly, upward only, RPI-linked rent reviews (subject to a 3.3% cap and a 1.0% floor),

  • 4 residential apartments, a GP medical centre and 4 ancillary units are also included in the purchase.

In addition SUPR has arranged a new RCF of £80.0 million with Barclays and RBC. The RCF has a 5 year term with a margin of 150bps over SONIA, representing a total cost of debt of 1.55%

Ben Green, Director of Atrato Capital Limited, Investment Adviser to Supermarket Income REIT, said:

"These two supermarkets are excellent additions to our portfolio. The lease lengths at 17 years and 24 years respectively are accretive to our portfolio WAULT of 16 years whilst adding another Waitrose store brings further diversification to the portfolio. The new RCF facility provides us with additional competitively priced funding to support the Company's growth."