Tesco Extra (not the specific store in Bristol purchased by Supermarket Income)

Property investment firm Supermarket Income REIT, which floated on the London Stock Exchange in July, has purchased the freehold of a Tesco Extra store in Bristol for £28.5m.

The store on Lime Trees Road, bought from a client of Aberdeen Asset Management at a net initial yield of 4.9%, is 55,000 sq ft on a 5.7-acre site, with more than 450 parking spaces.

It is being acquired with an unexpired lease term of approximately 13.5 years, subject to annual, upward-only, RPI-linked rent reviews.

Supermarket Income REIT listed on the specialist fund segment of the main market of the London Stock Exchange in July 2017 – raising £100m – with ambition to build a portfolio of supermarket assets in the UK.

The purchase of the Tesco store has been funded out of the equity proceeds of the IPO.

Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “We are delighted to announce our second property, with £72m now invested since our IPO last month.

“This Tesco Superstore is situated in a prime Bristol location and has a long history of strong trading performance. This investment will deliver an attractive inflation linked income stream and offers excellent asset upside potential over the longer term.”

The deal follows the acquisition of a Tesco Extra in Thetford, Norfolk, from M&G Real Estate for £43.2m earlier this month.