Supermarket Income REIT (SUPR) more than doubled the value of its joint venture with Blue Owl Capital to £845m in its first eight months of business, it results for the six months to the end of December reveal.
SUPR asset: Sainsbury’s, Barnwood
The FTSE 250-listed grocery real estate investment business launched the JV with the US asset manager last April with seed assets totalling £403m, with the target of reaching £1bn assets under management.
During the second half of 2025, SUPR completed £398m of acquisitions, including splashing£196m on 10-Asda supermarkets in a giant sale-and-leaseback deal.
SUPR chief executive Rob Abraham told Property Week the likelihood of repeat deals of that size is unlikely, with most supermarket operators now happy with their freehold portfolio balance.
“There may be some selective transactions in this area, but we have seen a lot of volume over the past two years in that space, so a lot of the sale-and-leaseback activity has been done,” he said.
“From our perspective it’s a great way to access strong performing food stores, so we will stay actively on the lookout for more deals.”
SUPR’s annualised passing rent increased 11% to £132m in the period, while its portfolio valuation rose 1.3% on a like-for-like basis.
SUPR said it is eyeing a £500m pipeline of opportunities across the full range of grocery real estate, with a core focus on UK omnichannel supermarkets, but also opportunities to expand into grocery-anchored retail parks, European supermarkets and grocery distribution
Abraham added: “The growth opportunity within grocery real estate remains highly compelling, with supermarket sales reaching record highs in December.
“Against this backdrop, our deep sector expertise, coupled with our strong sector relationships, gives us a unique advantage as we look to double the size of the portfolio over time.
Please visit:
Our Sponsor