UK-based real estate investment trust Supermarket Income REIT has purchased a portfolio of Carrefour France supermarkets for €75.3 million as part of an off-market sale and leaseback transaction.
It added that the portfolio 'comprises 17 strongly high-performing omnichannel supermarkets', geographically diversified with an inclination towards Northern France, and operated under the Carrefour Market banner.
The stores have an average gross internal area of 3,716 square metres, with a long history of successful trading, and form a key part of Carrefour's 'Drive' online grocery fulfilment network within their respective catchments.
The portfolio will reflect a net initial yield of 6.3% and has a weighted average lease term of 12 years with annual revision of the rents indexed to inflation.
The Acquisition
To finance the acquisition, Supermarket Income REIT, which operates in the food sector and has 76 supermarkets in its portfolio, has drawn €81.7 million from its current HSBC revolving credit line, also increasing the total size of the £25 million credit facility.
Ben Green, director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said, “This accretive transaction is complementary to our existing portfolio, providing further tenant diversification and continues our strategy of investing in the future model of grocery.”
The transaction represents the company's first investment in the French food real estate market, which is worth €284 billion. Supermarket Income REIT’s supermarkets are let to leading supermarket operators in the UK and Europe.
Recently, Carrefour reported like-for-like sales growth of 13.5% in the first quarter of its financial year on the back of the 'sound execution' of its strategic initiatives.
Read More: Groupe Casino Sells 121 Stores To Groupement Les Mousquetaires, Auchan Retail France, Carrefour
