Sainsbury’s to acquire freeholds on 13 store sites
Sainsbury’s is to acquire the freehold interest of 13 stores it already occupies.
The news was announced by Supermarket Income REIT in an update relating to its 50:50 joint venture with British Airways Pension Trustees.
The joint venture has a 51% beneficial interest in the Sainsbury’s reversion portfolio, which consists of 26 Sainsbury’s supermarkets, while the remaining 49% is held by Sainsbury’s.
Supermarket Income REIT said Sainsbury’s has exercised a purchase option to acquire 13 stores. The acquisition will complete in March 2023 on expiry of the current occupational leases.
Sainsbury’s also has a remaining purchase option to buy a further 10 stores in the portfolio, which can be exercised between December 2021 and January 2022.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “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.”
