Property investor Supermarket Income Reit has bought a Tesco supermarket site in Colchester, Essex, in a £63 million deal.
The company, which leases sites to firms in the grocery sector, said it has bought the site from Standard Life Investments Long Lease Fund.
Grocers have seen sales leap during the pandemic and have been allowed to keep stores open during lockdowns. Many sites offer landlords long term rental income.
The acquisition in Colchester comprises a 54,300 square feet supermarket, a 16-pump petrol filling station and 570 parking spaces.
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The store has several online fulfilment distribution docks supporting Tesco’s online grocery business.
Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income Reit said: “This Tesco store is a great addition to our growing portfolio of omnichannel stores with an attractive, long, index-linked lease in excess of 19 years.”
In results published in March for the six months to December 31, Supermarket Income Reit’s chairman Nick Hewson, said: “The last 12 months have highlighted the critical role of grocery property in the UK’s feed the nation infrastructure….Our supermarkets play a key role in supporting the response of the UK grocery sector to the pandemic and as a result we have experienced strong property investor interest in our market.”
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