A Tesco store in Llanelli has been acquired in a £66.8m deal. The property investment in the store at the Parc Trostre Retail Park, has been acquired by FSTE 250 listed real estate investment trust Supermarket Income REIT plc (SUPR), from M&G.
The acquisition, excluding acquisition costs, reflects a net initial yield of 5.3%. The deal sees SUPR effectively becoming the new landlord with Tesco a rent paying tenant. The 82,000 sq store was developed for Tesco in 1989 and occupies a 10 acre site at Parc Trostre. It also provide a 16-pump petrol filling station and 753 car parking spaces.
The store is an online hub, with 10 home delivery vans and a dedicated click and collect facility. It is being acquired from M&G with an unexpired lease term with Tesco of 12 years, with annual and upwards only retail price index-linked rent reviews (subject to a 5% cap and 0% floor).
Ben Green, director of Atrato Capital, the investment adviser to SPUR, said: “This acquisition further strengthens SUPR’s portfolio of top trading omnichannel supermarkets. The store has strong trading fundamentals, comes at an accretive acquisition yield and is subject to annual index-linked rent reviews.”
SPUR has an property investment portfolio of 74 supermarket sites across the UK.
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