Supermarket Income REIT has acquired British Airways Pension Trustees Limited’s (BAPTL) 25.5% interest in the Sainsbury’s Reversion Portfolio (SRP) for £196m. The REIT now owns a 51% stake in SRP and the remaining 49% is held by Sainsbury’s.
The portfolio comprises the freehold to 26 Sainsbury’s stores and the supermarket chain will acquire 21 stores for £1,040m in two tranches in March and July this year. Sainsbury’s has entered into new 15-year leases on four of the five remaining stores and it is anticipated that the one store that has not been regeared will be sold at vacant possession value.
The acquisition has been funded by a new debt facility provided by JPMorgan Chase Bank and the facility will be repaid in full following receipt of the first payment from Sainsbury’s in March.
Supermarket Income REIT formed a 50:50 joint venture with BAPTL in May 2020 to acquire a 25.5% stake in the SRP portfolio from British Land for £102m. In February 2021, the joint venture partners acquired an additional 25.5% stake in the portfolio from Aviva for £115m. The SRP portfolio was created in two sale and leaseback transactions in 2000.
