London-listed Supermarket Income REIT (SUPR) has acquired a portfolio of 20 Carrefour supermarkets in France for €123m.
The sale-and-leaseback transaction was agreed at an “attractive” net initial yield of 6.6%, SUPR said. The stores form a key part of Carrefour’s online fulfilment network Drive.
SUPR said the portfolio, which operates under the Carrefour brand in locations across France, added new and complementary locations to its existing portfolio. SUPR now has 46 Carrefour stores, which it said gives it critical mass and sufficient scale for efficient operations in the country. SUPR said it expects Carrefour to represent around 10% of its gross asset value.
The stores have an average gross internal area of 44,000sqft and are leased at “highly affordable” average rents of €9.70 per sqft. The portfolio’s average capital value of €139 per sqft “is materially below the estimated replacement cost for these assets”, SUPR said.
The portfolio has a weighted-average lease term of 12 years – with a tenant-only break option in year 10 – subject to annual uncapped inflation-linked rent reviews.
Following the transaction, SUPR will have fully redeployed approximately £200m of net proceeds from its April 2025 strategic joint venture with funds managed by Blue Owl Capital, at an average net initial yield of 6.6%.
Rob Abraham, CEO of Supermarket Income REIT, said: “I am delighted that we have now taken our French exposure to scale through another direct sale-and-leaseback transaction with Carrefour as we continue to recycle capital into earnings enhancing opportunities that further diversify our portfolio.
“SUPR is targeting a number of attractive UK pipeline transactions in the coming months, supporting the delivery of a fully covered and growing dividend over the long term.”
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