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Highlights
SUPR acquires 201 Carrefour supermarkets in France for €123 million at a net initial yield of 6.6%.
The portfolio includes 20 omnichannel “Drive” stores, enhancing the company’s online fulfilment footprint.
Acquisition financed through existing credit facility with a 3.5% cost cap until June 2030; LTV post-deal is 40%.
Supermarket Income REIT plc (LSE:SUPR) has completed the acquisition of a portfolio of 201 Carrefour supermarkets in France for a total purchase price of €123 million, strengthening its presence in the French retail sector. The transaction, carried out through a direct sale and leaseback, adds to SUPR’s existing assets and aligns with the company’s strategy to deploy capital into income-generating opportunities that support long-term dividend coverage.
Acquisition Details
The acquired Carrefour portfolio includes 201 stores across France, with an emphasis on 20 high-performing omnichannel locations forming part of Carrefour’s “Drive” online fulfilment network. The properties are geographically diversified, complementing SUPR’s current portfolio and offering additional scale for efficient operations. The stores benefit from limited competition within their catchment areas, an average gross internal area of approximately 44,000 sq. ft., and average rents of €9.70 per sq. ft. The portfolio’s average capital value stands at €139 per sq. ft., which is significantly below the estimated replacement cost for similar assets.
The acquisition was structured as a direct sale and leaseback transaction, achieving a net initial yield of 6.6% and a weighted average lease term of 12 years. Leases include annual uncapped inflation-linked rent reviews and a tenant-only break option in year 10, providing predictable rental growth and long-term income visibility.
Funding and Financing
SUPR financed the €123 million acquisition using its existing unsecured revolving credit facility. The Euro-denominated borrowing carries an all-in cost capped at 3.5% until June 2030, creating an attractive spread over the cost of debt. The company’s loan-to-value ratio post-acquisition is 40%, reflecting continued balance sheet flexibility.
Strategic Impact
Following the transaction, SUPR’s French portfolio now includes 46 Carrefour stores, representing critical scale in the region. Once near-term pipeline opportunities are fully deployed, Carrefour assets are expected to represent approximately 10% of the company’s gross asset value. Additionally, the company has redeployed £200 million of net proceeds from its April 2025 strategic joint venture with Blue Owl Capital into this acquisition, generating management fee income and benefiting from lower Euro-denominated borrowing costs.
