Supermarket Income acquired a Sainsbury’s supermarket in Preston, UK for £54.4 million ($54 million) and arranged a new £47.6 million ($58 million) term loan facility with DekaBank.
The facility is a five-year, interest-only loan. The loans has a fixed rate equal to a 1.35% margin over three month LIBOR, equivalent to a total interest cost of 2.0%.
The facility includes a £40 million ($49 million) uncommitted accordion option.
The loan is secured against the Sainsbury’s in Preston and Supermarket Income’s Tesco supermarket in Mansfield, UK which it bought in April.
Ben Green, director of Supermarket Income investment advisor Atrato Capital, said, “We are delighted to have secured DekaBank as a new lender to the group. Our new facility provides us with very competitively-priced, five-year funding with room to grow to support the company’s future investment requirements.”
