Supermarket Income REIT secures €251m loan for JV

Supermarket Income REIT has successfully secured a £215 mln (€250.7 mln) loan for its joint venture with Blue Owl Capital.

Supermarket Income REIT

A syndicate of banks, including Barclays, HSBC, ING, and SMBC, provided this interest-only loan, which has an initial three-year term and an option for a two-year extension. The loan's interest rate is 1.5% above SONIA, and the joint venture intends to hedge the drawn amount for the initial term.
Supermarket Income REIT will receive half of the loan proceeds. Initially, these funds will reduce existing debt, with the remainder being reinvested. With this new joint venture debt, the company's loan-to-value (LTV) ratio stands at approximately 31%.
Robert Abraham, CEO of Supermarket Income REIT, expressed satisfaction with the lender support and favorable pricing, attributing it to strong relationships with existing banks and the quality of their grocery assets.
Supermarket Income REIT focuses on acquiring omnichannel supermarkets in the UK and Europe, serving both online and in-store customers. Their portfolio is strategically diversified across leading supermarket tenants and geographic locations. The company aims to provide investors with a growing dividend and potential long-term capital appreciation through assets that generate secure, inflation-linked income.