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Supermarket Income REIT snaps up Tesco store
In the same week that British Land (BLND) sold 12 Sainsbury’s (SBRY) stores for £429m, specialist investor Supermarket Income REIT (SUPR) inked a £45m deal to buy a Tesco Extra supermarket in Mansfield.
While British Land’s decision was seen as a sign of the diminishing appeal of supermarkets as a property investment, its much smaller niche rival clearly sees value in the right kind of asset.
Investment bank Stifel comments: ‘The large store has characteristics exactly in line with the company’s acquisition criteria to which we consider it has strictly adhered since the IPO: a long unexpired lease length of 20 years, upward-only and RPI-linked rent reviews, the next of which falls in March 2020.’