Supermarket chain Sainsbury鈥檚 is buying back stores in a UK portfolio of supermarkets properties owned by a partnership between the British Airways pension fund and Supermarket Income REIT.
In May last year, British Airways Pension Trustees, trustee company for the British Airways pension fund has formed a 50:50 joint venture with Supermarket Income REIT to buy a 25.5% stake in the portfolio known as the Sainsbury鈥檚 Reversion Portfolio.
The joint venture invested a further 拢115m (鈧�135m) in February this year to double its stake in the portfolio to 51% as it acquired a 25.5% stake from an managed fund. Sainsbury鈥檚 held the remaining 49% stake in the 拢460m portfolio.
Supermarket Income REIT said Sainsbury鈥檚 has now exercised a purchase option to buy 13 stores within the portfolio. In addition, Sainsbury鈥檚 has a remaining purchase option to acquire 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: 鈥淪ainsbury鈥檚 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.
鈥漈he exercise of this first tranche of options is expected to generate a positive NAV impact for Supermarket Income REIT.鈥�
To read the digital edition of the latest 91传媒在线 magazine click here.
