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Property investor Supermarket Income REIT said it had formed an equal joint venture with the British Airways Pension Fund to acquire a 25.5% stake in a UK supermarket portfolio from British Land for £102m.
Supermarket Income REIT's contribution to the JV was £51m, excluding costs which would be satisfied from its existing cash balances and credit facilities.
The portfolio consisted of 26 Sainsbury's supermarkets, with a London and south east bias, and was created through two sale and leaseback transactions by Sainsbury's in 2000.
Sainsbury's would hold a 49% stake after the deal was completed, with Aviva holding the remaining 25.5%.
'Our investment in this Sainsbury's property portfolio gives us an interest which we believe will be highly NAV accretive over the next three years,' chairman Nick Hewson said.
'We will work closely with the co-owners, Sainsbury's and Aviva, to extend the leases and find a solution to the longer term ownership of the properties.'
At 9:26am:
(LON:BLND) British Land Company PLC share price was +21.95p at 401.95p
(LON:SUPR) Supermarket Income Reit Plc share price was +0.25p at 107.75p