Supermarket Income collects a further £117m from Sainsbury’s deal

Supermarket Income REIT has been handed the £117m second tranche of cash from the sale of the Sainsbury’s Reversion Portfolio, and taken on four more stores. The REIT will use the net proceeds to reduce debt, bringing LTV down to around 33%. As part of the deal, the REIT has bought Sainsbury’s 46% interest in the four remaining stores in the SRP Portfolio for £28.3m. Sainsbury’s entered into new 15-year leases on these stores with five-yearly open-market rent reviews and a tenant break option at year 10. The SRP has generated gross proceeds of £430.9m for the REIT and delivered an IRR of 30%. A fee of £7.5m has been paid to Atrato Halliwell, an affiliate of the REIT’s investment adviser. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews