Dentons and Kirkland & Ellis advise Blue Owl Capital on £403 million joint venture investment with SUPR

London-Dentons, together with Kirkland & Ellis, have advised US alternative asset manager Blue Owl Capital on a joint venture (JV) with Supermarket Income REIT plc (SUPR) formed with an initial portfolio of eight supermarket properties contributed by SUPR, with a combined value of £403 million.

Blue Owl Capital manages over US$250 billion in assets. The transaction marks Blue Owl's first major investment in the UK grocery sector and demonstrates its conviction in the long-term value of high-yielding supermarket real estate. The JV aims to grow its portfolio to £1 billion over the coming years, targeting further acquisitions across the UK. The partnership also supports SUPR's capital recycling strategy, enabling it to reduce debt and reinvest in new opportunities. The seed portfolio-comprising five Tesco stores, two Sainsbury's, and a Morrisons-features omni-channel locations supporting both in-store and online grocery fulfilment.

The Dentons team comprising more than 40 real estate lawyers in England and Scotland was led by Co-Chair of Global Real Estate Evan Z. Lazar and Head of UK Real Estate Rob Thompson.

Evan Z. Lazar, Co-Chair of Global Real Estate at Dentons, commented: "It's been a pleasure to advise Blue Owl on its entry into the UK retail sector through this significant transaction. Their partnership with SUPR, the UK's leading grocery real estate investor, sets a strong foundation for Blue Owl's growth in this space."

Rob Thompson, Head of UK Real Estate, added: "We are delighted to work with the team at Blue Owl. This transaction demonstrates our ability to deliver complex real estate advice that aligns with our clients' strategic investment objectives."

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