12th Jan 2023 09:28
(Alliance News) - Supermarket Income REIT PLC on Thursday celebrated the acquisition of an additional stake in its joint venture with British Airways Pension Trustees Ltd, thus expanding its interest in J Sainsbury PLC's Reversion Portfolio to 51%.
Supermarket Income REIT is a London-based real estate investment trust. British Airways Pension Trustees is a Harmondsworth, England-based company which holds the assets of both the Airways Pension Scheme and the New Airways Pension Scheme.
The investment trust has acquired BAPTL's 26% beneficial interest in Sainsbury's Reversion Portfolio for GBP196 million, increasing its beneficial interest in the portfolio to 51%.
The remaining 49% interest in the portfolio is held by Sainsbury's PLC.
The SRP portfolio comprises the freeholds to 26 Sainsbury's supermarkets, of which 21 properties will be acquired by Sainsbury's for GBP1.04 billion in March and July 2023, via two separate tranches.
Supermarket Income is due to receive a minimum of GBP380 million from Sainsbury's on the purchase of the option stores.
Beneficial ownership of the five remaining stores is split between both companies using the same ratio as the beneficial interests.
The acquisition has been funded entirely by a new debt facility provided by JPMorgan Chase Bank.
In other news, Supermarket Income declared an interim dividend on Thursday of 1.5 pence per share for the period from October 1 to December 31, slightly up from 1.485p a year prior.
Supermarket Income shares were trading 3.1% higher at 103.13 pence each in London on Thursday morning, while Sainsbury's shares were up 0.3% to 242.70p each.
By Holly Beveridge; Alliance News reporter
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