A major Gwent supermarket has been sold, as part of a multi-million pound acquisition deal.
Earlier this week, it was revealed that the Cwmbran branch of Asda, located at the Cwmbran Shopping Centre, has been acquired by real estate investment firm Supermarket Income REIT.
The deal, which also saw the firm acquire a Sainsbury’s supermarket in Tyne and Wear, was completed for a total purchase price of £55.1 million – plus acquisition costs.
It brings the total number of supermarkets directly owned by the company to 41, though this is both their first Asda store, and their first supermarket of any kind in the Gwent area – though they also own the Sainsbury’s at Quay Parade, Swansea.
While supermarket chain Asda themselves have yet to break their silence on the deal, it is not thought that it will have much on an impact on the day to day operations at the Cwmbran store.
Currently, the store, which was last refurbished in 2015 is undergoing major renovations, as part of plans to expand a section of store for the purpose of installing a purpose-built fulfilment dock, to allow online orders to be filled on-site.
According to the new owners, the store, which first opened in the 1970s, will “form a key part of Asda’s online fulfilment operations across the region.”
It has been confirmed that the store was acquired with an unexpired lease term of 10 years, with 5-yearly, upwards only, open market rent reviews.
What has been said about the acquisition?
Ben Green, director of Atrato Capital Limited, the investment adviser to Supermarket Income REIT plc, said: “These acquisitions are strong additions to Supermarket Income REIT’s growing portfolio of omnichannel stores and in combination are accretive to both the weighted average unexpired lease term and net initial yield of the Company’s portfolio.
“In addition, the Asda acquisition provides further tenant diversification for the portfolio.
“We are also pleased to further strengthen our relationships with Barclays and Royal Bank of Canada, who continue to be key funding partners for Supermarket Income REIT. The increased facility provides us with additional capacity as we deploy the proceeds of our recent equity raise.”
The Argus has contacted Asda for further information at this time.