Supermarket Income REIT sells stake for €489m

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property in the United Kingdom, has exchanged contracts for the sale of its interest in the Sainsbury’s Reversion Portfolio (the SRP Portfolio) to Sainsbury's for a total gross consideration of £430.9 million (€488.9 million/$524.1 million).

The sale completes the previously announced acquisition by Sainsbury’s of 21 of the 26 SRP Portfolio properties and concludes the contractual unwind of the SRP Portfolio structure.

Sainsbury’s has entered into new 15-year leases on four of the five remaining stores, with five yearly open market rent reviews and a tenant break option in year 10.

The net proceeds are expected to be used to reduce the company’s existing debt facilities.

In May 2020, Supermarket Income REIT formed a 50-50 joint venture with British Airways Pension Trustees Limited (BAPTL) to acquire from Brit