We are delighted to announce SUPR has entered into a £403m strategic joint venture (JV) with funds managed by Blue Owl Capital, a leading US alternative asset manager with over $250 bn assets under management. This is part of the Company’s ongoing strategy to recycle capital at attractive valuations and grow earnings.
The Company believes the principal benefits to the JV are as follows:
- Earnings accretion to SUPR through redeployment of capital, ongoing management fees and a potential performance fee
- Leveraging the expertise of the Company’s management team of sector specialists, increasing AUM and, as the JV’s assets grow, SUPR will further benefit from capturing the management fees on an enlarged portfolio.
- SUPR will retain an ongoing interest in a longer-term potential pipeline of assets that will remain in the JV structure
- Bringing on board a strategic capital partner with ambitions to grow its exposure in the UK grocery sector
Rob Abraham, CEO of Supermarket Income REIT, said:
“The JV with Blue Owl’s managed fund brings a high quality, strategic partner that shares our conviction in the value of high yielding UK supermarkets. With the potential to grow to £1bn over the coming years the JV partnership represents Blue Owl’s managed funds first major investment in the UK grocery space and is a strong endorsement of the expertise and track record SUPR has established in this market
For our shareholders, the JV is another important milestone in our strategy to recycle capital and grow earnings, and provides a platform for future growth with specialist third party capital. This follows a period of significant progress on a number of key strategic initiatives set out in November 2024, including renewing the three shortest leases in the portfolio, material cost reductions culminating in the internalisation of the management of the Company and other capital recycling activity. “
Marc Zahr, Co-President and Global Head of Real Assets at Blue Owl, said:
“SUPR is the leading UK grocery real estate investor, and we view them as the right counterparty as we execute on our first major transaction in the UK grocery sector. We see an opportunity to generate attractive returns from these assets, which are underpinned by the growing and highly resilient UK grocery sector. We look forward to working with SUPR to grow the JV, as we execute on an attractive pipeline of UK assets.”
Read more here: Strategic Joint Venture with Blue Owl Capital – 07:00:11 24 Apr 2025 – SUPR News article | London Stock Exchange
