Supermarket Income REIT acquires 10 Asda Supermarkets

UK grocery property investor Supermarket Income REIT (SUPR) and Blue Owl Capital Managed Funds have acquired 10 Asda omnichannel supermarkets through a £196 mln (€229.3 mln) sale and leaseback deal. 

Supermarket Income REIT

SUPR contributed £98 mln (€114.7 mln) for its 50% share. These strategically chosen stores are large (averaging 7,246 m2) and located in high-demand areas.
Additionally, SUPR has agreed to transfer five of its existing properties, valued at £232 mln (€271.4 mln), which is 3% above their June 2025 book value, into the JV. This transfer is expected by December 31st, with SUPR maintaining a 50% interest in these assets and earning an annual management fee on its JV partner's share.
The JV will scale to £833 mln (€974.6 mln), comprising 23 assets. SUPR will recycle lower-yielding assets into higher-yielding, strong-performing stores, while the WAULT will extend by 0.7 years to 12 years. 
The 10 Asda stores were acquired at a 7.4% net initial yield (7.9% Cap Rate) with 25-year leases and annual CPI-linked rent reviews (1% floor, 4% cap). Asset management will be shared within the JV, with SUPR handling finance administration. The selected Asda stores are high-performing omni-channel sites supporting online fulfilment, rigorously vetted for strong sales and catchment populations, and possess strong alternative use potential.
The pro-forma loan-to-value (LTV) will be 40%. SUPR also has around £100 mln (€117 mln) in additional assets under exclusivity, expected to close by year-end.
The acquired Asda locations include Armadale Station, Donnington Wood, Llandudno, Long Eaton, Melksham, Newmains, St Austell, Stockton, Tunstall, and Yeovil.
Rob Abraham, CEO of Supermarket Income REIT, commented: "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. Looking ahead, we have further financing capacity to scale both our business and the JV portfolio."