Sainsbury’s has bought back eight supermarkets from its reversion portfolio.
The portfolio, 51% owned by Supermarket Income REIT and British Airways Pension Trustees and 49% held by Sainsbury’s, consists of the freeholds of 26 Sainsbury’s supermarkets.
This is the second, and final, purchase option exercised by Sainsbury’s, following its decision to acquire 13 stores within the portfolio in September 2021. The deals will be completed in March and July 2023, when the current occupational leases expire.
After the options are exercised just five stores will remain in the portfolio.
SIREIT said the purchase price was yet to be determined, but would be based on the assumption of a new 20-year lease to Sainsbury’s with the initial rent set at the higher of passing or open market, subject to upward-only, five-yearly market rent reviews.
Atrato Capital director Ben Green, SIREIT’s investment adviser, said: “Sainsbury’s buyback of these stores is further evidence of the strength of demand for grocery property in the UK. The exercise of these purchase options is expected to generate a positive NTA impact for Supermarket Income REIT.”
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