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Sign in Sign up for a FREE subscriptionSupermarket REIT and BAPTL form JV
Supermarket Income REIT, a U.K. supermarket real estate investor, has formed a 50-50 joint venture with British Airways Pension Trustees Limited (BAPTL) acting on behalf of the British Airways Pension Fund to acquire from British Land Plc a 25.5 percent stake in one of the U.K.’s largest portfolios of supermarket properties for £102 million (€114 billion/$125 billion).
The company’s contribution to the joint venture is £51 million (€57 billion/$62 billion), excluding costs, which will be satisfied from its existing cash balances and credit facilities.
The portfolio consists of 26 Sainsbury’s supermarkets. It is a geographically diverse high-quality portfolio of stores with a London and southeast bias. It was created through two sale and leaseback transactions by Sainsbury’s in 2000. Following this transaction, the freeholds of the properties are now owned by Sainsbury’s (49 percent), Aviva (25.5 percent) and the joint venture (25.5 percent).
The
