# Supermarket Income REIT completes £97.6m UK supermarket acquisitions

- Link: https://www.directorstalkinterviews.com/supermarket-income-reit-completes-97-6m-uk-supermarket-acquisitions/4121232040
- Published: 2025-12-24T12:20:18+00:00
- Author: Amilia Stone

**Supermarket Income REIT plc **(LON:SUPR, JSE: SRI) has announced that it has completed
the acquisition of three supermarkets in the UK for a total purchase price of £97.6
million, at an average net initial yield of 5.5%^(1).

These acquisitions, comprising well-established stores with long trading histories,
have been carefully selected to align with SUPR’s core business strategy and drive
further earnings accretion.

**Tesco, Aylesbury**

·    Purchase price of £56.3 million (excluding acquisition costs) at a 5.2%^(1)
net initial yield

·    11.2-acre site comprising 110,000 sq. ft. supermarket with 15 home delivery
vans, a Click & Collect facility and a petrol filling station

·    Tesco has been trading from this site for over 40 years

·    Triple-net lease unexpired term of 11 years with annual RPI-linked rent reviews
^(2) (subject to a 3% cap and 1% floor)

·    Strong trading store with an affordable rent of £26.9 per sq. ft., following
a lease renewal four years ago

**Sainsbury’s, Sale**

·    Off-market acquisition for £33.8 million (excluding acquisition costs) at a
5.9%^(1) net initial yield

·    4.4-acre site comprising 60,000 sq. ft. supermarket with over 350 car park 
spaces

·    Sainsbury’s has been trading from the site for over 29 years

·    Triple-net lease unexpired term of 16 years with annual RPI-linked rent reviews(
subject to a 4% cap and 1.5% floor), with rent of £35.2 per sq. ft.

**Waitrose, Frimley**

·    Purchase price of £7.6 million (excluding acquisition costs) at a 6.2%^(1) 
net initial yield

·    1.3-acre site comprising 30,000 sq. ft. supermarket with 5 home delivery vans
and a Click & Collect facility

·    Waitrose has been operating at the site for over 25 years

·    Triple-net lease unexpired term of 11 years with 5-yearly CPI-linked rent reviews(
subject to a 3% cap and 1% floor), with rent of £15.9 per sq. ft.

These acquisitions have been funded through the drawdown of the Company’s existing
debt facility. Following the completion of pipeline transactions, the Company’s 
pro-forma LTV is expected to be 43% with a portfolio WAULT of 12 years, and exposure
to investment grade tenants has increased to 75%^(3).

> **Rob Abraham, CEO of Supermarket Income REIT, commented: **
> _“_The acquisitions come at the end of a transformational year for SUPR, where
> we delivered on key strategic objectives, including lease renewals, internalisation,
> our debut bond issuance and changes to our listing. We established and scaled 
> our strategic joint venture with Blue Owl Capital Managed Funds, enabling us to
> execute on an attractive pipeline of assets whilst receiving management fee income
> on stores transferred into the JV. We are on track to have recycled approximately
> £400 million of capital this year into an exciting range of acquisitions across
> the various channels in our earnings accretive pipeline.
> We continue to see further opportunities ahead and look forward to continuing 
> to grow the business as we cement our position as the leading landlord to grocery
> tenants.”

^(1) NIY assuming respective standard purchaser’s cost and including vendor rent
top-ups where applicable

^(2) RPI until 2028, CPI thereafter

^(3) Assumes the Company’s five stores are transferred to the JV as previously announced,
following completion of due diligence; this transaction is included within the £
400 million capital recycling total

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