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Supermarket Income REIT PLC said on Thursday it has formed a strategic joint venture with funds managed by Blue Owl Capital. The London-based real estate investment trust for property leased to grocery retailers said the joint venture provides a platform for further growth, seeking to acquire additional supermarket assets, with a view to grow the assets of the joint venture up to £1 billion over the coming years. Blue Owl is a US alternative asset manager with over $250 billion of assets under management. Supermarket said the joint venture has been seeded with eight high-yielding supermarket assets from its existing portfolio. The seed portfolio has a combined value of £403 million, the company said. Supermarket said it will retain a 50% stake in the joint venture, and will receive a net cash consideration of £200 million over the sale of the assets. The real estate investment trust said it will use the proceeds from the joint venture to reduce debt in the near term and to invest in other supermarkets. Also, Supermarket said it will receive a management fee of 0.6% per annum of the gross asset value for the ongoing management of Blue Owl’s interest in the joint venture and potentially a performance fee if the joint venture meets certain financial targets. ‘The JV with Blue Owl’s managed funds brings a high quality, strategic capital partner that shares our conviction in the value of high yielding UK supermarkets,’ Supermarket Chief Executive Officer Robert Abraham said. Shares in Supermarket were up 0.9% at 77.95 pence in London on Thursday morning, but they were unchanged at R 19.80 in Johannesburg. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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