Supermarket Income REIT acquires Tesco site in Bristol

Property investor Supermarket Income REIT has acquired a Tesco supermarket, an Iceland Food Warehouse, and a number of complementary non-grocery units in Bristol for £84.0m.

Supermarket Income REIT said on Monday that the 19.8-acre site in Bradley Stoke includes a 74,717 square foot net sales area Tesco supermarket, which has been operational since the 1980s.

Other tenants on the site, which Supermarket REIT will acquire from CBRE Investment Management, include Boots, Greggs, Costa Coffee, and Pets at Home.

The FTSE 250-listed firm added that the Tesco store has an unexpired lease term of 14 years, with annual, upwards-only, RPI-linked rent reviews. The acquisition price was said to reflect a net initial yield of 5.6%.

Reporting by Iain Gilbert at Sharecast.com