Stock market volatility in the UK has prompted one of the country’s real estate investment trusts (REITs) to abandon plans to acquire £500m (€559m) worth of Sainsbury’s supermarkets.

LXi REIT, which invests in long-income real estate assets, said it had pulled plans to raise capital and enter into a sale-and-leaseback arrangement with Sainsbury’s, announced last week.

LXi REIT, which is undergoing a merger with Secure Income REIT, was due to acquire a portfolio of 18 prime grocery stores, located predominantly in Southern England.

Meanwhile, another UK REIT, Supermarket Income REIT, today announced it had acquired a Tesco supermarket, an Iceland Food Warehouse and several retail units in Bristol for £84m.