10th Nov 2025 09:29
(Alliance News) - Supermarket Income REIT PLC on Monday said it has completed acquisitions worth GBP40.9 million, including a J Sainsbury PLC portfolio and a Tesco PLC store.
The London-based real estate investment trust for property leased to grocery retailers said its two purchases are accretive to earnings and are at an average net initial yield of 6.4%.
Supermarket Income acquired a Tesco in Craigavon, Northern Ireland, at a purchase price of GBP25.6 million, reflecting a net initial yield of 6.5%.
The unexpired term of the triple-net lease is 15 years with rent reviews every five years.
Supermarket Income said it acquired a portfolio of 10 Sainsbury's convenience stores. This was at a purchase price of GBP15.3 million and reflects a net initial yield of 6.1%.
The stores have been acquired with a 15-year triple-net lease with five-yearly rent reviews.
Supermarket Income said this marks the company's first investment in convenience grocery.
The Sainsbury stores are located in town-centre locations: Boston Manor, Bristol, Doncaster, Edinburgh, Melbourne, Nottingham, Royal Leamington Spa, Sheffield, Solihull and South Benfleet.
The company said that, following these acquisitions, its pro-forma loan-to-value is 36% and its portfolio weighted average unexpired lease term is at 11 years.
Supermarket Income said it has redeployed GBP99.8 million of the proceeds of the company's strategic joint venture with funds managed by Blue Owl Capital, which was announced in April.
Chief Executive Rob Abraham said: "We continue to make good progress with redeploying the proceeds from our joint venture into income accretive opportunities. We have a strong pipeline of large format omnichannel supermarkets, whilst we also see attractive relative value in smaller format convenience stores as demonstrated by our acquisition from Sainsbury's.
"Our relationship-led model and sector specialism continues to set us apart in the market, enabling us to unlock these unique opportunities and strategically scale the business."
Shares in Supermarket Income rose 1.3% to 81.63 pence on Monday morning in London.
By Roya Shahidi, Alliance News reporter
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