Supermarket Income REIT increases loan for Blue Owl JV to £437m

The FTSE 250-listed grocery real estate investment business launched the JV with the US asset manager last April.

Starting with seed assets totalling £403m, the JV has since grown to £845m following a series of acquisitions, including splashing £196m on 10 Asda supermarkets.

With a target of £1bn in assets under management, the JV has increased its secured term loan with a bank syndicate comprising Barclays, HSBC, ING, Lloyds and Crédit Agricole CIB.

The interest-only facility matures in June 2028, and benefits from two one-year extension options at the lenders’ discretion. The increased facility is priced at a margin of 1.65% above SONIA and the cost is fixed for the duration of the facility at an all-in rate of 5.24%.

SUPR will receive 50% of the proceeds from the increased facility, which will be used to refinance the company’s near-term debt maturities. After the transaction, the REIT’s loan-to-value, including debt within the joint venture, is 43%.

Mike Perkins, chief financial officer at SUPR, said: “We are very pleased with the continued support shown by our existing lenders, and are equally pleased to welcome two new lenders, Lloyds and Crédit Agricole CIB, to the syndicate.

“The company continues to have good access to capital, highlighting the strength of our relationships with lenders and the attractiveness of top-performing grocery real estate assets.”