Saturday, August 13, 2022

Supermarket Income acquires Sainsbury’s in Bangor for £24.8m


The site on the West Circular Corridor was developed in 2011 and includes a store, parking spaces and petrol station

London-listed property investor Supermarket Income REIT has acquired the Sainsbury’s complex in Bangor, Northern Ireland, in a deal worth £24.8 million.

The seller was John Morgan Estates, a Belfast-based property letting agency.

The ten-acre site on the West Circular Corridor was developed in 2011 and includes a store, 650 parking spaces and an eight-pump petrol station.

It also includes a Homebase unit spread across 33,000 sq ft.

The Sainsbury’s store has an unexpired lease term of 15 years with five-yearly rent reviews subject to 2 per cent fixed annually compounded uplifts.

The Homebase unit has an unexpired lease term of 10 years.

Based on the cost of the deal, the combined net initial yield is 6.6 per cent.

Ben Green, of Atrato Capital, the investment adviser to Supermarket Income REIT, said: This income accretive acquisition is our first in Northern Ireland, adding further geographical diversification to our growing portfolio of UK supermarkets.

The company is a real estate investment trust (REIT) which provides secure, inflation-protected, long income from grocery property in the UK.

Supermarket Income REIT claims to provide its shareholders with an attractive level of income along with the potential for capital growth by investing in supermarket real estate assets.

Its properties are fully let on long indexed linked leases to the biggest names in the UK grocery sector with excellent covenant strength.

It boasts of an impressive portfolio which includes seven Sainsbury’s stores, eight Tesco’s, eight Waitrose, three Morrisons and one Aldi.

Its directly-owned portfolio is valued at £1.1 billion and generates more than £52 million in rents annually.

It is the biggest deal in Northern Ireland so far this year, and near the highest transaction of 2020, when Pimco’s Bravo Strategies III fund paid £34.7 million for a 90 per cent in Sprucefield Retail Park in Lisburn.


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