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.
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