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.
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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.