Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Acquisition in East Midlands fits strict investment criteria

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.’

‹ Previous2019-05-02Next ›