Supermarket Income REIT buys portfolio of Carrefour supermarkets for €75.3m

Supermarket Income REIT said on Monday that it has bought a portfolio of Carrefour supermarkets in France through a sale and leaseback transaction for €75.3m.

This reflects a net initial yield of 6.3%.

The company said the portfolio acquisition is in accordance with its investment policy and comprises 17 "strong performing omnichannel supermarkets", which are geographically diversified, with a weighting towards northern France, and operated under the Carrefour Market brand.

The portfolio has been acquired with a weighted average lease term of 12 years with annual uncapped inflation-linked rent reviews.

To fund the acquisition, the company has drawn €81.7m from its existing HSBC revolving credit facility having also increased the total size of the facility by £25m.

Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT, said: "We are delighted to have completed this strategic sale and lease back transaction with Carrefour, one of the largest grocers in the world. The transaction represents the company's first investment in the €284bn French grocery real estate market.

"This accretive transaction is complementary to our existing portfolio, providing further tenant diversification and continues our strategy of investing in the future model of grocery."