Acquisition of three supermarkets for £98 million

SUPR announces that it has completed the acquisition of three supermarkets in the UK for a total purchase price of £97.6 million, at an average net initial yield of 5.5%¹.

These acquisitions, comprising well-established stores with long trading histories, have been carefully selected to align with SUPR’s core business strategy and drive further earnings accretion.

Tesco, Aylesbury

·    Purchase price of £56.3 million (excluding acquisition costs) at a 5.2%¹ net initial yield

·    11.2-acre site comprising 110,000 sq. ft. supermarket with 15 home delivery vans, a Click & Collect facility and a petrol filling station

·    Tesco has been trading from this site for over 40 years

·    Triple-net lease unexpired term of 11 years with annual RPI-linked rent reviews² (subject to a 3% cap and 1% floor)

·    Strong trading store with an affordable rent of £26.9 per sq. ft., following a lease renewal four years ago

Sainsbury’s, Sale

·    Off-market acquisition for £33.8 million (excluding acquisition costs) at a 5.9%¹ net initial yield

·    4.4-acre site comprising 60,000 sq. ft. supermarket with over 350 car park spaces

·    Sainsbury’s has been trading from the site for over 29 years

·    Triple-net lease unexpired term of 16 years with annual RPI-linked rent reviews (subject to a 4% cap and 1.5% floor), with rent of £35.2 per sq. ft.

Waitrose, Frimley

·    Purchase price of £7.6 million (excluding acquisition costs) at a 6.2%¹ net initial yield

·    1.3-acre site comprising 30,000 sq. ft. supermarket with 5 home delivery vans and a Click & Collect facility

·    Waitrose has been operating at the site for over 25 years

·    Triple-net lease unexpired term of 11 years with 5-yearly CPI-linked rent reviews (subject to a 3% cap and 1% floor), with rent of £15.9 per sq. ft.

These acquisitions have been funded through the drawdown of the Company’s existing debt facility. Following the completion of pipeline transactions, the Company’s pro-forma LTV is expected to be 43% with a portfolio WAULT of 12 years, and exposure to investment grade tenants has increased to 75%³.

Notes

¹ NIY assuming respective standard purchaser’s cost and including vendor rent top-ups where applicable

² RPI until 2028, CPI thereafter

³ Assumes the Company’s five stores are transferred to the JV as previously announced, following completion of due diligence