Supermarket Inc REIT - SUPR completes £41m of accretive acquisitions

Supermarket Income REIT

10/11/2025 07:00

RNS Number : 8389G

Supermarket Income REIT PLC

10 November 2025

 

10 November 2025

SUPERMARKET INCOME REIT PLC  

(the "Company")  

 

SUPR COMPLETES £41M OF ACCRETIVE ACQUISITIONS

Supermarket Income REIT plc (LSE: SUPR) announces that it is has completed £40.9 million of acquisitions that are accretive to earnings and WAULT across two transactions at an average net initial yield of 6.4%1.

Following these transactions the Company has now redeployed £99.8 million of the proceeds of the Company's strategic joint venture with funds managed by Blue Owl Capital ("Blue Owl"), which was announced in April 2025, at a net initial yield of 6.7%.

Tesco, Craigavon acquisition

The acquisition of this upper quartile performing food store in Craigavon, Northern Ireland, at a purchase price of £25.6 million (excluding acquisition costs) reflects an attractive net initial yield of 6.5%2. The 8.6-acre site comprises a 130,000 sq ft gross internal area omnichannel supermarket and a petrol filling station and is the primary omnichannel Tesco store within a 25-minute drivetime of the site. It serves as an online fulfilment hub with 12 home delivery vans, as well as offering Click & Collect services. The unexpired term of the triple-net lease is 15 years with five-yearly, CPI-linked rent reviews (annually compounded, subject to a 4% cap and 0% floor), with a highly affordable rent of £12.70 per sq. ft.

Acquisition of a portfolio of 10 Sainsbury's convenience stores marks entry into convenience-grocery

The Company has also completed the acquisition of 10 Sainsbury's convenience stores at a purchase price of £15.3 million (excluding acquisition costs), reflecting a net initial yield of 6.1%3. The stores are being acquired from Sainsbury's with attractive 15-year triple-net leases that benefit from five-yearly, CPI-linked rent reviews (annually compounded, subject to a 3% cap and 1% floor).  

The acquisition of these strong trading stores represents SUPR's first investment in convenience grocery. These strongly performing stores have an average gross internal area of 5,800 sq ft and are situated in densely populated town-centre locations across the UK, with strong footfall and visibility. 

Locations of the Sainsbury's assets:

·    Boston Manor

·    Bristol

·    Doncaster

·    Edinburgh

·    Melbourne

·    Nottingham

·    Royal Leamington Spa

·    Sheffield

·    Solihull

·    South Benfleet

The Company increasingly sees opportunity within the small format grocery space, where strong trading stores can be acquired at attractive prices and retain the key triple-net, inflation-linked fundamentals of the adjacent large format grocery sector.  

Following these acquisitions, the Company's pro-forma LTV is 36%, with the portfolio WAULT at 11 years.

Rob Abraham, CEO of Supermarket Income REIT, commented:  

"We continue to make good progress with redeploying the proceeds from our joint venture into income accretive opportunities. We have a strong pipeline of large format omnichannel supermarkets, whilst we also see attractive relative value in smaller format convenience stores as demonstrated by our acquisition from Sainsbury's. Our relationship-led model and sector specialism continues to set us apart in the market, enabling us to unlock these unique opportunities and strategically scale the business." 

Notes

1 NIY assuming respective standard purchaser's costs

2 NIY assuming standard purchaser's costs of 6.8%

3 NIY assuming standard purchaser's costs of 7.8%

 

 

FOR FURTHER INFORMATION
Supermarket Income REIT
Rob Abraham / Mike Perkins / Chris McMahon
ir@suprplc.com
Stifel Nicolaus Europe Limited
+44 (0)20 7710 7600
Mark Young / Rajpal Padam / Catriona Neville
Goldman Sachs International
Tom Hartley / Luca Vincenzini
+44 (0)20 7774 1000
Headland Consultancy
+44 (0)20 3805 4885
Susanna Voyle / Antonia Pollock / Dan Mahoney
SUPR@headlandconsultancy.com

 

NOTES TO EDITORS:     

Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), a FTSE 250 company, is the only LSE listed company dedicated to investing in grocery properties which are an essential part of national food infrastructure. The Company focuses on grocery stores which are predominantly omnichannel, fulfilling online and in-person sales and are let to leading supermarket operators in the UK and Europe. The portfolio was valued at £1.6 billion as at 30 June 2025. 

The Company's properties earn long-dated, secure, inflation-linked, growing rental income. SUPR targets a progressive dividend and the potential for long term capital growth. 

The Company's shares are traded on the LSE's Main Market and on the Main Board of the JSE Limited in South Africa.  

Further information is available on the Company's website www.supermarketincomereit.com   

LEI: 2138007FOINJKAM7L537   

Stifel Nicolaus Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Stifel Nicolaus Europe Limited nor for providing advice in connection with the matters referred to in this announcement. 

Goldman Sachs International, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Goldman Sachs International nor for providing advice in connection with the matters referred to in this announcement. 

 

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