Supermarket Income REIT plc has acquired a further stake in the beneficial interest in Sainsbury’s Reversion portfolio, one of the UK’s largest portfolios of supermarket properties, from an Aviva Investors managed fund.
The 25.5% beneficial interest has been acquired through the company’s existing 50:50 joint venture with British Airways Pension Trustees Limited (BAPTL).
The purchase price is £115.0 million meaning that the company’s contribution to the JV to fund the acquisition is £57.5 million, said Supermarket Income REIT in a statement.
The JV acquired its initial 25.5% beneficial interest from British Land Plc in May 2020. Following this second acquisition, the JV’s ownership in the portfolio is 51.0%. The remaining 49.0% beneficial interest is held by Sainsbury’s plc.
The portfolio was originally created through two sale and leaseback transactions by Sainsbury’s in 2000 and consists of the freehold interest in 26 Sainsbury’s supermarkets. It is a geographically diverse portfolio of stores with a London and south east bias.
“This acquisition increases the size of our investment in this high-quality Sainsbury’s property portfolio through our joint venture with British Airways Pension Trustees Limited. We will work closely with our tenant and co-owner, Sainsbury’s, to deliver a long term occupational solution for them,” said Nick Hewson, Chairman of Supermarket Income REIT.