Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF), the real estate investment trust providing inflation-linked income from grocery properties in the UK, has announced that the sale of its interest in the Sainsbury's Reversion Portfolio, completed on 17 March 2023.
The REIT has received £279.3mln from the first tranche of the total £430.9mln gross consideration (excluding costs), as announced by the company on March 14.
The Sainsbury's Reversion Portfolio, which consists of 26 Sainsbury's supermarkets, was initially acquired by a joint venture comprising Supermarket Income REIT and British Airways Pension Trustees, with the Supermarket REIT’s contribution totalling £108.5mln, excluding costs.
It is estimated that the investment will have provided a money-on-money multiple of 1.9 times and an internal rate of return of 30%.
The company said it has used part of these proceeds to repay in full the £202.8mln debt facility provided by JP Morgan Chase Bank secured on the company's investment in the SRP Portfolio.
"This investment has been highly accretive for our shareholders and is further evidence of the long-term strength and value of UK grocery property," said Ben Green, director of Atrato Capital, the investment advisor to Supermarket Income REIT in a statement.