SUPR completes €48m in grocery property acquisitions

UK grocery property investor Supermarket Income REIT (SUPR) has completed two acquisitions totalling £40.9 mln (€47.8 mln).

Grocery cart - Supermarket Income REIT

These transactions were made at an average net initial yield of 6.4%, bringing the total redeployed proceeds from its joint venture with Blue Owl Capital to £99.8 mln (€116.6 mln) at a 6.7% net initial yield.
One acquisition is a Tesco supermarket in Craigavon, Northern Ireland, purchased for £25.6 mln (€29.9 mln) at a 6.5% net initial yield. This 12,077 m2 omnichannel store, which includes a petrol station, serves as a key online fulfillment hub for the region. It comes with a 15-year triple-net lease featuring CPI-linked rent reviews (capped at 4%, floored at 0%).
Additionally, SUPR has entered the convenience grocery market by acquiring a portfolio of 10 Sainsbury's convenience stores for £15.3 mln (€17.9 mln), reflecting a 6.1% net initial yield. These stores, located in densely populated town centres across the UK (including Bristol, Edinburgh, and Sheffield), also have attractive 15-year triple-net leases with CPI-linked rent reviews (capped at 3%, floored at 1%).
These strategic acquisitions have resulted in a pro-forma Loan-to-Value (LTV) of 36% and a portfolio WAULT of 11 years.
Rob Abraham, CEO of Supermarket Income REIT, commented: "We continue to make good progress with redeploying the proceeds from our joint venture into income accretive opportunities. We have a strong pipeline of large format omnichannel supermarkets, whilst we also see attractive relative value in smaller format convenience stores as demonstrated by our acquisition from Sainsbury's. Our relationship-led model and sector specialism continues to set us apart in the market, enabling us to unlock these unique opportunities and strategically scale the business."