Supermarket Income REIT has exchanged contracts for the sale of its interest in the Sainsbury’s Reversion Portfolio to Sainsbury's for a total gross consideration of €489.4m (£430.9m).
The sale completes the previously announced acquisition by Sainsbury’s of 21 of the 26 SRP Portfolio properties and concludes the contractual unwind of the SRP Portfolio structure.
Sainsbury’s has entered into new 15-year leases on four of the five remaining stores, with five yearly open market rent reviews and a tenant break option in year ten. Following completion of the transaction, SUPR has an option to acquire these four stores benefitting from the new Sainsbury’s 15-year leases for a net consideration of €32m (£28.3m, net of SUPR’s existing interest and excluding acquisition costs). It is expected that the one remaining store will be sold at vacant possession value.
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said:?? “This investment has been highly accretive for our shareholders and is further evidence of the long-term strength and value of UK grocery property.”
Patrick Dunne, Director of Group Property, FM & Procurement at Sainsbury’s, commented:“We are pleased to have reached a positive outcome to conclude our joint venture and look forward to continuing to work with Supermarket Income REIT in the future.”
