Macfarlanes has advised long-standing client Supermarket Income REIT Plc, the real estate investment trust dedicated to investing in supermarket properties, on a strategic joint venture with funds managed by Blue Owl Capital, a leading US alternative asset manager. 

The 50-50 joint venture has been seeded with eight supermarkets from Supermarket Income REIT Plc’s existing portfolio with an aggregate value in excess of £400m.

As well as a net cash consideration of over £200m, Supermarket Income REIT Plc will receive a management fee of 0.6% per annum of the gross asset value for the management of Blue Owl’s interest.

Supermarket Income REIT Plc will use part of the proceeds to continue its extensive investment strategy; looking to acquire further supermarkets, directly or indirectly through the joint venture. The joint venture provides a platform for continued growth with a view to grow the assets of the joint venture up to £1bn over the coming years. 

The Macfarlanes team was led by Real Estate Partner Nick Barnes and Corporate and M&A Partner Justin Hope. Real Estate advice was provided by Senior Counsels Cate Taylor and Margaret Rhodes, Senior Associate Florien Stone and Associate Imogen Courtney. Corporate and M&A advice was provided by Senior Associates Andrew Wheelhouse, Kathryn Jarvis-Hunter and San-Marie Saaiman, and Associates Beth Hitchcock and Shamir Sawjani. Finance advice was provided by Senior Advisor Colin Morgan and Senior Associate Christian Anthony. Financial Services Regulation advice was provided by Partner Alexandra Green, Senior Associate Alex Clothier and Associate Ayman Shash. Tax advice was provided by Partners Jeremy Moncrieff and Sarah Shucksmith, and Associate Rebecca Rose. Insurance advice was provided by Partner Andrew Barton and Senior Counsel Madison Kaur. 

Commenting on the transaction, Robert Abraham, CEO of Supermarket Income REIT Plc, said: “We were delighted to work with Macfarlanes on our strategic joint venture with Blue Owl. This marks a crucial step in our strategy to reinvest capital and increase earnings. The team at Macfarlanes was exceptional.” 

Nick Barnes comments: “We are pleased to have advised long-standing client Supermarket Income REIT Plc on their joint venture with Blue Owl, which highlights their expertise and track record in the UK grocery market.  The transaction showcases our ability to advise on complex corporate real estate transactions with a multi-disciplinary team from across the firm.”