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(Alliance News) - Supermarket Income REIT PLC on Friday said J Sainsbury PLC has bought back 13 stores from the grocery property investor's joint venture with British Airways Pension Trustees Ltd.
Supermarket Income and British Airways Pension Trustees' joint venture has a 51% interest in Sainsbury's reversion portfolio, which consists of the freeholds to 26 of Sainsbury's supermarkets.
Sainsbury's will now acquire 13 of the portfolio stores. The deal will be completed in March 2023 when the current occupational leases expire.
"The purchase price will be determined 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," Supermarket Income said.
Sainsbury's has a remaining purchase option for a further 10 stores in the joint venture portfolio, which can be exercised between December 2021 and January 2022.
Ben Green, a director of Supermarket Income's investment adviser, Atrato Capital Ltd, expects the first tranche to generate positive net asset value for Supermarket Income.
Shares in Supermarket Income were up 0.3% at 117.82 pence in London on Friday.
By Josie O'Brien; josieobrien@alliancenews.com
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