Supermarket Income REIT expands $583 million facility to refinance debt

Supermarket Income REIT Plc, the UK-listed real estate investment trust focused on grocery properties, has increased its secured term loan facility by £222 million ($296.3 million) to £437 million ($583.24 million) through its joint venture with funds managed by Blue Owl Capital. 

The refinancing, backed by a syndicate of major banks, underscores continued lender confidence in income-generating supermarket assets.

Strengthening balance sheet flexibility
The interest-only facility, provided by a banking group comprising Barclays, HSBC, ING, Lloyds and Crédit Agricole CIB, will mature in June 2028, with two optional one-year extensions. It is priced at a margin of 1.65% above SONIA, with a fixed all-in rate of 5.24% over the term.

Supermarket Income REIT will receive 50% of the proceeds from the expanded facility, which will be used to refinance near-term debt maturities and enhance liquidity. Following the transaction, the company’s loan-to-value (LTV), including joint venture debt, stands at 43%, reflecting a stable leverage position.

“We are very pleased with the continued support shown by our existing lenders and equally pleased to welcome Lloyds and Crédit Agricole CIB to the syndicate,” said Chief Financial Officer Mike Perkins. “The company continues to have good access to capital, highlighting the strength of our lender relationships and the attractiveness of top-performing grocery real estate assets.”

Resilient grocery property portfolio
Supermarket Income REIT, a FTSE 250 company listed on both the London Stock Exchange and the Johannesburg Stock Exchange, specializes in investing in omnichannel grocery stores that support both in-person and online retail. Its portfolio, valued at £2.1 billion ($2.8 billion) as of December 31, 2025, is leased to leading supermarket operators across the UK and Europe.

The company’s assets generate long-term, inflation-linked rental income, positioning it as a defensive play within the real estate sector. Its strategy focuses on delivering stable cash flows, progressive dividends, and long-term capital appreciation.

By expanding its joint venture financing, Supermarket Income REIT is reinforcing its capital structure while maintaining exposure to essential retail infrastructure, a segment that continues to attract strong institutional backing amid shifting consumer and economic dynamics.