Supermarket Income REIT enters c-store market with Sainsbury’s portfolio deal
£15.3m acquisition of 10 trading stores marks new growth avenue alongside core supermarket strategy.
Supermarket Income REIT has entered the UK convenience grocery market with the acquisition of a portfolio of 10 Sainsbury’s convenience stores for £15.3 million, marking its first investment in the c-store segment.
The portfolio was acquired at a net initial yield of 6.1% and consists of strong trading neighbourhood stores, which the company says retain the core investment characteristics of its existing large-format supermarket assets, including triple-net lease structures and inflation-linked income.
The move signals a strategic extension of Supermarket Income REIT’s focus beyond traditional omnichannel supermarkets into the growing convenience sector, where it reports “increasingly seeing opportunities to acquire strong trading stores at attractive prices.”
Alongside the convenience acquisition, REIT also completed the purchase of a Tesco omnichannel supermarket in Craigavon for £25.6 million, reflecting a 6.5% net initial yield on a 15-year triple-net lease. The 130,000 sq ft store operates as a key omnichannel hub, with 12 home delivery vans and a click-and-collect facility, and is described as strongly trading with inflation-linked rental uplifts.
Following the deals, Supermarket Income REIT has now redeployed £99.8 million of proceeds from its previous joint venture with funds managed by Blue Owl Capital, further reinforcing its positioning in both the supermarket and now convenience grocery sectors.
