Supermarket Income REIT plc has acquired BAPTL’s 25.5% beneficial interest in the Sainsbury's Reversion portfolio for €221.2m (£196m, excluding acquisition costs), resulting in the company’s beneficial interest in the SRP Portfolio increasing to 51%. The remaining 49% interest in the SRP Portfolio is held by Sainsbury's.
The SRP Portfolio comprises the freeholds to 26 Sainsbury’s supermarkets of which 21 properties will be acquired by Sainsbury’s in two tranches in March 2023 and July 2023. The ownership of the five remaining stores is held between the company and Sainsbury’s in the same proportions as the beneficial interests. Sainsbury’s has entered into new 15-year leases on four of these stores with five yearly open market rent reviews and a tenant break option at year 10. It is expected that the one store that has not been regeared will be sold at vacant possession value. As a result of Sainsbury’s purchasing the option stores, the company will receive a minimum of €429m (£380m) in cash from Sainsbury’s in two tranches.
