Investment group acquires three long-standing grocery stores in £98m deal

Core Insights - Supermarket Income Real Estate Investment Trust (SUPR) has acquired three established supermarkets in the UK for a total of £97.6 million, enhancing its grocery portfolio [1] - The acquisitions are aligned with SUPR's strategy of targeting resilient grocery locations with strong covenant strength, secured at an average net initial yield of 5.5% [1] Acquisition Details - The largest acquisition is a Tesco store in Aylesbury, Buckinghamshire, purchased for £56.3 million, featuring a petrol station and Click & Collect facilities, with 11 years remaining on the lease [2] - A Sainsbury's store in Sale, Greater Manchester, was acquired for £33.8 million, with 16 years remaining on the lease [3] - A Waitrose supermarket in Frimley, Surrey, was acquired for £7.6 million, operating for over 25 years and including home delivery and Click & Collect facilities [4] Financial Overview - The acquisitions were funded through existing debt facilities, with an expected loan-to-value ratio of around 43% and a weighted average unexpired lease term of 12 years [5] - Exposure to investment-grade tenants has increased to 75%, reinforcing the defensive nature of the portfolio [5] Strategic Outlook - The CEO of SUPR highlighted that these deals mark a "transformational year" for the business, with approximately £400 million of capital expected to be recycled into acquisitions [6] - The company anticipates further growth opportunities as it aims to solidify its position as a leading landlord to grocery tenants [7]