Sainsbury’s acquires freeholds of 13 UK sites from joint venture portfolio

Supermarket giant Sainsbury’s has acquired the freehold interest of 13 of its sites across the UK in a new deal.

Supermarket Income REIT announced the update this morning in relation to its 50:50 joint venture with British Airways Pension Trustees Limited (JV).

The JV has a 51 per cent beneficial interest in the Sainsbury’s Reversion portfolio. The remaining 49 per cent beneficial interest is held by Sainsbury’s. The portfolio consists of the freeholds to 26 Sainsbury’s supermarkets.

Sainsbury’s has agreed to purchase 13 stores within the portfolio, with the acquisition set to be completed in March 2023 upon expiry of the current occupational leases.

Ben Green, director of Atrato Capital Limited - the investment adviser to Supermarket Income REIT, commented: “Sainsbury’s decision to buy back these stores is further evidence of the strength of demand for grocery property in the UK and also demonstrates the balance sheet strength of the supermarket operators.

“The exercise of this first tranche of options is expected to generate a positive NAV impact for Supermarket Income REIT.”