Business
SUPR scales joint venture through sale & leaseback
Supermarket Income REIT plc has expanded its joint venture with Blue Owl Capital by acquiring ten omnichannel Asda supermarkets for £196 million, with SUPR contributing £98 million. The company is also transferring five of its existing assets valued at £232 million into the joint venture, which will increase the JV's scale to £833 million across 23 assets. These transactions are expected to enhance earnings per share, extend the weighted average unexpired lease term to 12 years, and provide market evidence of valuations 3% above book value. Following these deals, SUPR's exposure to investment grade tenants will be 74%, and its pro-forma loan-to-value ratio will be 40%. Disclaimer*
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n\n20 November 2025\nSUPERMARKET INCOME REIT PLC \n(the \"Company\" or \"SUPR\") \n \nSUPR scales joint venture through a direct sale and leaseback\n \n· £196 million acquisition of 10 omnichannel Asda supermarkets by joint venture with Blue Owl Capital Managed Funds\n· Agreed terms for the transfer of £232 million of SUPR assets into the joint venture\n \nSupermarket Income REIT plc (LSE: SUPR, JSE: SRI), announces an update on its joint venture (the \"JV\") with funds managed by Blue Owl Capital (\"Blue Owl\").\n \nThe JV has acquired 10 omnichannel Asda supermarkets in a sale and leaseback transaction for £196 million (SUPR's share: £98 million). The handpicked portfolio of strong omnichannel stores has an average gross internal area of 78,000 sq. ft. and generates significant sales volumes from within highly desirable catchment areas. The Company has also agreed terms for the transfer of five of its existing assets into the JV at a value of £232 million, subject to due diligence. The transfer of these assets to the JV is expected to occur by 31 December and further details will be provided following completion. \n \nThe transactions are in line with SUPR's strategy of deploying capital into highly attractive and accretive opportunities that have significant strategic benefits1:\n \n\n\n\n\n· \n\n\nScaling and diversifying the JV to £833 million and comprising 23 assets\n\n\n\n\n· \n\n\nRecycling some lower yielding assets and redeploying into strong performing, higher yield stores, enhancing EPS\n\n\n\n\n· \n\n\nExtending SUPR's weighted average unexpired lease term (\"WAULT\") by 0.7 years to 12 years\n\n\n\n\n· \n\n\nProviding market evidence of valuations on a further £232 million of the portfolio; transacting 3% above book value (as at 30 June 2025)\n\n\n\n\n· \n\n\nEnhancing fee income generated from the JV by £0.8 million\n\n\n\n\n \nAsda acquisition\n \nThe JV has agreed to purchase a portfolio of 10 high-performing omnichannel supermarkets from Asda for a total purchase price of £196 million (excluding acquisition costs) at a net initial yield (\"NIY\") of 7.4% (Cap Rate of 7.9%) (the \"Asda Acquisition\"). The Company will be contrib...