Supermarket Income REIT("SUPR") plc, a dual listed company in London Stock Exchange(LSE) and Johannesburg Stock Exchange(JSE) has acquired additional 20 Carrefour supermarkets in France.
SUPR mentioned that the acquisition of these stores is in line with its strategy to deploy capital into accretive pipeline opportunities which support long term dividend cover and growth.
SUPR confirmed that the portfolio has been acquired through a direct sale and leaseback transaction, for a total purchase price of €123 million (excluding acquisition costs), at an attractive net initial yield of 6.6%.
SUPR highlighted that the 20 strong performing omnichannel stores have long trading histories and form a key part of Carrefour's “Drive” online fulfilment network. The portfolio operates under the Carrefour brand and is geographically diversified across France, adding new and complementary locations to SUPR's existing portfolio. The stores also benefit from low competition within each of their catchment areas.
The statement revealed that SUPR has funded the acquisition through its existing unsecured revolving credit facility with an all-in cost of the Euro denominated borrowing capped at 3.5% until June 2030, with the acquisition providing an attractive spread over the cost of debt. Following this acquisition the Company's LTV is 40%.
The statement added that the Company now has 46 Carrefour stores, achieving critical mass and providing sufficient scale for efficient operations in France. Upon full deployment of SUPR's debt capacity into near term pipeline opportunities, the Company expects Carrefour to represent c.10% of its gross asset value.
The statement also mentioned that following this transaction, the Company has fully redeployed the c. £200 million of net proceeds from its April 2025 strategic joint venture with managed by Blue Owl Capital ("Blue Owl"), at an average NIY of 6.6%. This activity has enhanced earnings through JV management fee income and the lower cost of Euro financing.
“I am delighted that we have now taken our French exposure to scale through another direct sale and leaseback transaction with Carrefour as we continue to recycle capital into earnings enhancing opportunities that further diversify our portfolio. SUPR is targeting a number of attractive UK pipeline transactions in the coming months, supporting the delivery of a fully covered and growing dividend over the long term,” said Rob Abraham, CEO of Supermarket Income REIT.