British Land, Sainsbury sell 12 Superstores properties for $557 million

(Reuters) - British Land Company Plc said on Tuesday it and joint venture partner Sainsbury Plc sold 12 Superstores properties to U.S.-based Realty Income Corp for 429 million pound ($556.9 million).

British Land said its share of the proceeds from the disposal would be 193.5 million pounds and the portfolio represented a modest premium to the company’s September 2018 book value.

The deal, expected to be completed in May, will reduce British Land’s Superstores exposure to 1.3 percent of its portfolio with six standalone stores remaining, it said.

“We are focused on further sales of retail assets which are not aligned to our strategy and continue to make good progress,” British Land said.

Realty Income Corp said separately that the deal was a long-term net lease agreement and marked the company’s first international real estate acquisition.

Reporting by Karina Dsouza in Bengaluru; Editing by Gopakumar Warrier