REG - Sainsbury(J) PLC - Property Transactions

J SainsburyAnnouncement

21/09/2022 10:15

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RNS Number : 1422A  Sainsbury(J) PLC  21 September 2022

21(st) September 2022

J Sainsbury plc

 

Property transactions

 

Sainsbury's is in discussions with LXi REIT plc to sell 18 supermarket stores
to LXi REIT for approximately £500m on a sale and leaseback basis. LXi REIT
has announced that it is discussing with investors a possible share issue to
part-fund this transaction and that there can be no certainty that the
transaction or the associated share issue would take place.

 

Additionally, we are pleased to announce that we have reached agreement on an
acquisition price for the 21 stores in the Highbury and Dragon investment
vehicles, on which Sainsbury's served notice to purchase last year and earlier
this year. The acquisitions will complete in the first half of the financial
year to March 2024.

 

Sainsbury's has held a c.49% interest in Highbury and Dragon since it was
created in 2000. The vehicles comprise the freeholds of 26 Sainsbury's
supermarkets which are leased to Sainsbury's. The remaining c.51% is owned by
a joint venture between Supermarket Income REIT and British Airways Pension
Trustees Limited ("the JV"). This agreement marks a significant step in the
process of bringing the structure to an end.

 

If the LXi transaction were to proceed, the cash received from this
transaction would be used to part-fund the purchase of the 21 Highbury and
Dragon stores. In combination with some other smaller activities, this would
result in a broadly unchanged proportion of leasehold and freehold Sainsbury's
supermarkets, with ownership and lease structures better reflecting current
market conditions and our priorities. The financial impact has been
anticipated in our planning and accordingly would not impact guidance.
However, there would be a cash timing effect as we would expect to receive the
sales proceeds of the LXi REIT transaction this financial year but will
complete the Highbury and Dragon purchases next financial year.

 

ENDS

 

Enquiries

 

Investor Relations
Enquiries                                   Media
Enquiries

James Collins   +44 (0) 20 7695 7112
 Rebecca Reilly   +44 (0) 20 7695 7295

 

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