The store was developed in the 1980’s and was subsequently extended and refurbished by Morrisons in 2011 to comprise 37,000 sq ft net sales area. It is being acquired with a new 26 year lease (with a tenant-only break option in year 20) and is subject to five yearly, upwards only, RPI-linked rent reviews (subject to a 3.0% cap and a 1.5% floor). The store forms a key part of Morrisons’ online grocery fulfilment network providing both home delivery and click and collect to its local catchment.
This prominent nine acre site has parking provision for over 500 vehicles and the acquisition includes two adjoining units comprising a 36,000 sq ft net sales area let to B&Q and B&M with a weighted unexpired lease term of eight years and subject to open market rent reviews.
The total consideration is £30.0 million (excluding acquisition costs) representing a combined net initial yield of 5.0%.
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said:
“This modern store is a great addition to our growing portfolio of omnichannel stores. The property has strong underlying fundamentals with an attractive lease term providing inflation linked income in excess of 20 years.”