Supermarket Income REIT PLC (LSE:SUPR), which has a stake in the Sainsbury’s Reversion Portfolio, welcomed the supermarket giant’s decision to acquire eight stores in the portfolio.
Supermarket Income REIT has a 50% stake in a joint venture with the British Airways Pensions Trust and in turn that joint venture has a 51% beneficial interest in the Sainsbury’s Reversion Portfolio, which comprises the freeholds to 26 Sainsbury supermarkets.
Sainsbury’s acquisition of eight of the stores will be completed in July 2023 upon expiry of the current occupational leases. The FTSE 100 retailer has already committed to acquiring 13 stores in the portfolio in March 2023. Today’s announcement brings the number of stores Sainsbury’s is acquiring to 21.
“Sainsbury’s buyback of these stores is further evidence of the strength of demand for grocery property in the UK. The exercise of these purchase options is expected to generate a positive NTA [net tangible assets] impact for Supermarket Income REIT,” said Ben Green of Atrato Capital, which is the investment advisor to Supermarket Income REIT.
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