Supermarket Income REIT has bolstered its portfolio with the £49.7 million acquisition of a prominent Sainsbury’s supermarket in Huddersfield, West Yorkshire.

Spanning 113,348 sq ft, the site includes an omnichannel supermarket and a petrol filling station, occupying an expansive 8.5-acre plot. Sainsbury’s has been a fixture on the site for over three decades, with the current lease offering 11 years of unexpired term and annual inflation-linked rent reviews.

In addition to serving in-store shoppers, the site plays a key role in Sainsbury’s online operations, functioning as a fulfilment hub with 12 home delivery vans and click-and-collect services.

The acquisition was funded through Supermarket Income REIT’s existing debt facility, bringing the company’s loan-to-value ratio to 39%. The REIT’s portfolio now boasts a weighted average unexpired lease term of 12 years, reflecting its commitment to long-term stability and growth.

A Strategic Move for Shareholder Value
Ben Green, Principal at Atrato Capital Limited, investment adviser to Supermarket Income REIT, expressed enthusiasm for the acquisition:
“We are delighted to add this high-quality UK asset to our portfolio. This acquisition underlines our focus on delivering strong returns and exploring new opportunities to enhance value for Supermarket Income REIT’s shareholders.”

This latest investment underscores Supermarket Income REIT’s confidence in the resilience and growth potential of the UK’s grocery sector, solidifying its reputation as a key player in the market.

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