Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has secured a £215 million debt facility for its joint venture with Blue Owl Capital, strengthening the group’s financial position as it looks to manage and redeploy capital more efficiently.
The new term loan has been arranged through a syndicate of lenders comprising Barclays, HSBC, ING and SMBC. It is interest-only and runs for three years, with the option of two one-year extensions, subject to lender approval.
The loan is priced at 1.5% above SONIA, the Sterling Overnight Index Average. This benchmark reflects the average interest rate at which banks lend to one another overnight and has largely replaced LIBOR in UK financial markets.
The joint venture plans to hedge the drawn amount for the initial three-year term, offering a degree of protection against future rate movements.
Supermarket Income REIT will receive half the proceeds from the facility. These funds will initially be used to repay existing borrowings, reducing the company’s immediate leverage before being allocated elsewhere.
On a look-through basis, including the joint venture debt, the company said its loan-to-value ratio stands at around 31%.
The refinancing gives the business added flexibility at a time when property investors are navigating a higher interest rate environment and more selective lending conditions.
While no new acquisitions were announced alongside the deal, the structure suggests capacity for capital redeployment when market opportunities arise.
Supermarket Income REIT focuses on grocery property assets in the UK, aiming to deliver long-term, inflation-linked income.
Its partnership with Blue Owl, a global alternative asset manager, supports this strategy by sharing risk and enabling access to larger-scale financing.