Macfarlanes advises joint venture backed by Supermarket Income REIT on acquisition of £115m interest in securitised supermarket portfolio

18 February 2021

Macfarlanes has advised a joint venture backed by Supermarket Income REIT plc on the acquisition from Aviva of a 25% stake in one of the UK's largest portfolios of supermarket properties for £115m.

The portfolio consists of 26 Sainsbury’s supermarkets and is funded by bonds, which mature in 2023.

The 50:50 joint venture between Supermarket Income REIT and British Airways Pension Trustees Limited (acting on behalf of the British Airways Pension Fund) now owns over 50% of the portfolio, having already purchased a 25% stake from British Land in May 2020, on which Macfarlanes also advised.

The transaction was led by corporate and M&A partner Robert Boyle, with assistance from senior counsel Mark Slade and solicitor Olivia MacLellan. Tax advice was provided by tax partner Jeremy Moncrieff, senior solicitor Shaul Steinberg and solicitor Helen Broadbridge.

Commenting on the transaction, Robert Boyle said: “This transaction gives Supermarket Income REIT significant influence in determining the future of the securitised portfolio. We are delighted to have advised on this important acquisition.”