RENEWABLE ENERGY

Supermarket Income REIT provides Shareholders with an attractive level of income together with the potential for capital growth by investing in supermarket real estate assets 

Opportunity 

As a responsible business, we seek to minimise the impact that our properties have on the local and wider environment. Our aim is to be a market leader in sustainability and to meet our stakeholder’s expectations of sustainable investment. 

Our tenants have ambitious net zero targets that are well ahead of the UK’s own timetable.

When acquiring an asset we consider both the existing environmental performance of the property as well as the potential for installation of renewable energy infrastructure such as PV systems.

 

Supermarket real estate is ideally positioned for PV system installation for three reasons: 

 

  • Demand - The grocery sector is one of the largest users of electricity in the UK, accounting for c5% of the UK’s total electricity consumption. Our tenants are actively looking for opportunities to reduce energy usage and its associated costs to meet their own ambitious ESG targets. (1)

  • Lease fundamentals - Supermarket real estate is characterised by long leases with no option to break. This helps to facilitate the adoption of long-term Power Purchase Agreements (PPAs). A PPA provides tenants with a long-term supply of clean energy at an agreed price.

  • Design - Supermarkets are large buildings which usually have extensive flat roofs that are therefore optimal for both solar installation and generation.

​Strategy

The board of Supermarket Income REIT has entered into non-legally binding heads of terms with the board of Atrato Onsite Energy in respect of origination opportunities across its property portfolio. 

Atrato Onsite Energy is a newly established closed-ended investment company focussed on investing in onsite solar assets which are commercialised through a power purchase agreement. 

(1) BEIS https://www.gov.uk/government/statistical-data-sets/historical-electricity-data

(2) Evo Energy Estimates

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How it works