The REIT, which focuses on stores occupied by the major grocery chains that have omnichannel or online fulfilment capability, said it had acquired the site from the National Farmers Union for £53.1mln reflecting a combined net initial yield of 4.1%.
Sainsbury’s has been a long-term tenant on the 11-acre site which was originally developed in the 1980s and completely rebuilt in 2011.
The site comprises a 68,000 square foot net sales area supermarket with purpose-built online fulfilment docks, 420 parking spaces and a 12-pump petrol filling station.
The supermarket is being acquired with an unexpired lease term of 21 years with five-yearly, upward-only, RPI-linked rent reviews.
The next scheduled rent review is in November 2021, which will see the combined net initial yield from the site increase to a minimum of 4.6%.
The site also includes three unoccupied commercial units yielding over 9%, which are principally leased to car group Peugeot.
Supermarket Income REIT currently has 46 properties in its portfolio of which 20 are directly owned and 26 through joint venture arrangements.
In a statement, Ben Green, a director of Atrato Capital, the REIT’s investment adviser, said: “This omnichannel Sainsbury’s store is an excellent addition to our growing portfolio. The property has strong underlying fundamentals with an attractive inflation-linked lease in excess of 20 years and provides asset management opportunities.”