Supermarket Income REIT plc purchased its first asset in a £43.2 million deal with M&G Real Estate, representing a 5.35% net initial yield.
The Tesco superstore in Thetford, Norfolk, U.K., was bought using equity proceeds from the company's IPO . The deal will represent a 5.55% net initial yield after the next retail prices index-based rent review slated in December.
The 78,000-square-foot store sits on a 10.4-acre site that includes at least 500 parking spaces. It comes with an unexpired 12.5-year lease contract, subject to annual upward rent reviews that offer a 4% capitalization rate.