Supermarket Income Reit has purchased 20 Carrefour supermarkets in France for €123m, nearly doubling its portfolio of sites with the French retailer.
The stores have been acquired through a direct sale and leaseback transaction at a net initial yield of 6.6%, with an average lease term of 12 years.
The portfolio is said to be geographically diversified across France, adding new and complementary locations to Supermarket Income REIT's existing portfolio in areas of low competition.
The FTSE 250 real estate investor now owns a total of 46 stores under the Carrefour brand, which it says now represents around 10% of company gross asset value.
"I am delighted that we have now taken our French exposure to scale through another direct sale and leaseback transaction with Carrefour as we continue to recycle capital into earnings enhancing opportunities that further diversify our portfolio," said SUPR chief executive Rob Abraham.
"SUPR is targeting a number of attractive UK pipeline transactions in the coming months, supporting the delivery of a fully covered and growing dividend over the long term."