£104M Grocery Asset Acquisition
Supermarket Income REIT Completes £104 Million Acquisition of Six UK Grocery Assets
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Key Points
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The 74,000 sq ft Sainsbury’s in Macclesfield includes click-and-collect and home-delivery facilities. Its 13-year triple-net lease has annual RPI-linked rent reviews capped at 4% and floored at 2%, with rental income of £37 per sq ft.
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The 80,000 sq ft Morrisons in Leeds also provides click-and-collect and home delivery. It has a 13-year triple-net lease, five-yearly RPI-linked rent reviews capped at 4% with no floor, and rental income of £21 per sq ft.
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The Nottinghamshire retail park is a 50,000 sq ft fully anchored scheme with tenants including B&Q, Costa, Greggs and Mountain Warehouse. Its leases are triple-net, with five-yearly open-market rent reviews, and the scheme has a five-year weighted average unexpired lease term.
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Rob Abraham said the company had delivered the acquisition pipeline within two months, describing the purchases as “six high-quality grocery assets” and saying they completed deployment of the July equity-raise proceeds.
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The Birmingham Co-op is a 4,000 sq ft food store with an eight-year triple-net lease, five-yearly RPI-linked rent reviews capped at 4% and floored at 1%, and rent of £20 per sq ft.
Supermarket Income REIT has bought six grocery assets across England and Scotland for £104 million, completing deployment of a £100 million equity raise from July MarketScreener. The portfolio spans supermarkets, a distribution center, and a retail park — strengthening the REIT's exposure to food retail and grocery-anchored locations. The acquisitions carry an average net initial yield of 6.6% and leases averaging about 10 years BeNews.
Six Assets Anchor REIT's Grocery Expansion
The deal includes a 74,000 sq ft Sainsbury's in Macclesfield with click-and-collect and home delivery. The store has a 13-year triple-net lease with annual RPI-linked rent reviews capped at 4% and floored at 2%, generating £37 per sq ft BeNews.
A 80,000 sq ft Morrisons in Leeds also offers click-and-collect and home-delivery options under a 13-year triple-net lease. Rent reviews happen every five years and are RPI-linked, capped at 4% with no floor, producing £21 per sq ft MarketScreener.
The portfolio also includes a 4,000 sq ft Co-op food store in Birmingham with an eight-year lease, an M&S store in Glasgow, an Avonmouth distribution center, and a 50,000 sq ft Nottinghamshire retail park anchored by B&Q, Costa, Greggs, and Mountain Warehouse BeNews.
Distribution Deployed in Two Months
Rob Abraham, CEO, said the company completed the acquisition pipeline within two months, calling the assets "six high-quality grocery assets." The purchases mark the full deployment of the July equity-raise proceeds MarketScreener.
Lease Terms Lock In Long-Term Yields
The assets carry leases with strong protections for landlords. Most include RPI-linked rent reviews — meaning rents rise with inflation — though caps limit annual increases. The Macclesfield Sainsbury's caps rises at 4% annually with a 2% floor, while the Birmingham Co-op caps at 4% with a 1% floor BeNews.
The Nottinghamshire retail park uses five-yearly open-market rent reviews rather than inflation-linked adjustments. With a weighted average unexpired lease term of just five years on that scheme, it requires closer monitoring of market conditions MarketScreener.
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