Supermarket income[{” attribute=”” tabindex=”0″ role=”link”>REIT has announced a significant expansion of its joint venture (JV) with funds managed by Blue Owl Capital, following the acquisition of 10 omnichannel Asda supermarkets for £196 million and the agreed transfer of a further £232 million of SUPR-owned assets into the JV.
The JV has purchased the Asda stores through a direct sale-and-leaseback agreement, with SUPR contributing £98 million to the transaction, reflecting its 50% interest. The stores—selected from an initial pool of 20—are described as upper-quartile omnichannel supermarkets with an average gross internal area of 78,000 sq ft, supporting both in-store sales and online fulfilment operations.
The assets are being acquired on 25-year leases with CPI-linked annual rent reviews (capped at 4% and floored at 1%) and low passing rents averaging £19.90 per sq ft. The JV partners will share asset management responsibilities, while SUPR will oversee finance administration and reporting.
Alongside the acquisition, SUPR has agreed terms to transfer five of its existing assets into the JV at a combined value of £232 million, representing a 3% premium to their June 2025 book value. Subject to due diligence, the transfer is expected to complete by 31 December, with SUPR retaining a 50% stake via the JV structure.
Together, the transactions are expected to scale the JV portfolio to £833 million across 23 assets. SUPR said the deals align with its strategy of recycling capital into higher-yielding, accretive assets while enhancing diversification and earnings. The REIT expects the moves to extend its weighted average unexpired lease term to 12 years, increase management fee income by £0.8 million, and provide further valuation evidence for its portfolio.
Post-transaction, SUPR’s exposure to investment-grade tenants will stand at 74%, with Asda representing 8% of rent roll. The REIT’s pro-forma loan-to-value ratio is expected to be approximately 40%. The company also noted it has around £100 million of additional assets under exclusivity, targeted for completion by year-end.
Rob Abraham, CEO of Supermarket Income REIT, said the transactions reflect the company’s focus on delivering shareholder returns and scaling its grocery-focused portfolio.
“These transactions further demonstrate our ability to deliver on our strategy, as we continue to successfully drive returns for our shareholders,” Abraham said. “Working closely with Blue Owl, we are pleased to have increased the scale of the JV through the addition of these top quartile Asda stores and the expected transfer of five of SUPR’s existing stores.”
He added that the company maintains financing capacity to continue expanding both its standalone portfolio and the JV.
Asda stores acquired by the JV include locations in: Armadale Station, Donnington Wood, Llandudno, Long Eaton, Melksham, Newmains, St Austell, Stockton, Tunstall and Yeovil.
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