Supermarket Income REIT has acquired a portfolio of 17 Carrefour supermarkets in France through a sale and leaseback transaction (SLB) of €75.3m (£64.3m), excluding acquisition costs.

The deal by the UK-based property investor, which is geographically diversified and weighted towards northern France, reflects a net yield of 6.3%.

Supermarket Income REIT said it has drawn €81.7m (£69.7m) from its existing HSBC revolving credit facility in order to fund the acquisition, having increased the total size of the facility by £25m.

The SLB portfolio has been acquired with a weighted average lease term of 12 years and comes with annual uncapped inflation-linked rent reviews.

Director at Atrato Capital, the investment adviser to Supermarket Income REIT, Ben Green, said: "We are delighted to have completed this strategic sale and lease back transaction with Carrefour, one of the largest grocers in the world. The transaction represents the company's first investment in the €284bn French grocery real estate market.

"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."

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