San Diego San Diego

San Diego-based Realty Income Corp. has closed on 12 properties in the US under long-term net lease agreements with Sainsbury's in a sale-leaseback transaction. The transaction totaled £429 million or approximately $545 million.

This is Realty Income's first international deal. The sale-leaseback closed at a 5.35% cap rate initially, but includes rent increases for the duration of the 15-year lease term. The company funded the transaction with proceeds from the private placement of £315 million of senior unsecured notes due 2034 with a fixed interest rate of 2.73%.

The company will hedge the net cash flow through a 15-year currency swap to mitigate exposure to fluctuations in foreign currency.

 

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.