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Supermarket Income REIT PLC on Tuesday said it received the £116.9 million second tranche from the sale of its interest in JD Sainsbury PLC’s reversion portfolio, as expected. The real estate investment trust focused on UK grocery stores said it will use the net proceeds of the second tranche to reduce debt. Supermarket Income said the completed transaction has generated total gross proceeds of £430.9 million and delivered an internal rate of return rate of 30%. Based on its most recently published portfolio valuation on December 31, Supermarket Income’s loan-to-value ratio will be around 33% following this debt repayment, the company said. Supermarket Income also said it acquired Sainsbury’s 46% interest in the four remaining stores in the SRP for £28.3 million, net of Supermarket Income’s existing 54% interest and excluding acquisition costs. This was part of the final completion of the SRP transaction, the company said. Sainsbury’s entered into new 15-year leases on these stores, Supermarket Income said, with five yearly open market rent reviews and a tenant break option at year ten. Following the completed transaction, Supermarket Income said a promote fee of £7.5 million has been paid to Atrato Halliwell, an affiliate of the investment adviser to Supermarket Income. Shares in Supermarket Income were up 1.2% to 71.11 pence each in London early Tuesday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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