Supermarket Income REIT plc bought a Tesco Extra supermarket in Cumbernauld, Scotland, from Legal and General for £50 million.

The transaction will generate a 5.5% net initial yield after the next agreed Retail Price Index-linked rent review in March 2018.

The 9.5-acre site includes a 117,000-square-foot Tesco Extra store, about 570 parking spaces and a 12-pump filling station. Its acquisition brings along a lease that has an unexpired term of 23 years and is subject to annual, upward-only, RPI-linked rent reviews.

Proceeds from the company's £20 million equity issuance and revolving credit facility bankrolled the acquisition.