Supermarket Income REIT (SUPR) has bought British Airways Pension Trustees Limited’s (BAPTL) stake in the pair’s partnership that holds half of a UK portfolio of supermarket properties.
SUPR said it has acquired the British Airways pension fund trustee company’s 25.5% beneficial interest in the Sainsbury’s Reversion Portfolio (SRP Portfolio) for £196m (€221m).
The deal gives SUPR a 51% stake in the SRP Portfolio alongside supermarket chain Sainsbury’s, which holds the remaining 49% interest in the 26-asset portfolio. Sainsbury’s is expected to buy 21 of the properties for £1.04bn in two tranches in March 2023 and July 2023.
Following the acquisition by Sainsbury’s, SUPR will receive at least £264m in March 2023 and £116m in July 2023.
SUPR and BAPTL first formed the 50:50 joint venture in May 2020 to acquire British Land’s 25.5% stake in the SRP Portfolio for £102m. The joint venture again in February 2021 acquired a further 25.5% stake in the portfolio from Aviva for £115m.
In September 2021 and in January 2022, Sainsbury’s exercised options to acquire 21 stores within the SRP Portfolio.
To read the latest edition of the latest IPE Real Assets magazine click here.
No comments yet