Dentons Facilitates £215 Million Loan for Blue Owl Capital and SUPR

In a significant financial move, Dentons has successfully advised the US-based alternative asset manager, Blue Owl Capital, in partnership with Supermarket Income REIT PLC (SUPR), on the completion of a £215 million secured term loan. This loan was orchestrated through a syndicate of prominent banks including Barclays, HSBC, ING, and SMBC Group, marking a pivotal moment in the investment landscape of the UK grocery sector.

The deal, finalized on July 9, 2025, is part of Blue Owl Capital's strategic initiative to expand its footprint in the UK market, particularly within the grocery industry. Earlier this year, Dentons had facilitated the initial joint venture between Blue Owl Capital and SUPR, which saw the formation of a portfolio valued at £403 million, comprising eight supermarket properties. This partnership aims to bolster SUPR's capital recycling strategy, allowing for debt reduction and reinvestment in new opportunities.

The seed portfolio includes five Tesco stores, two Sainsbury’s locations, and a Morrisons outlet, emphasizing omni-channel capabilities that cater to both in-store and online grocery fulfillment. This strategic acquisition is expected to enhance the operational efficiency and market reach of both Blue Owl and SUPR.

Evan Z. Lazar, Co-Chair of Global Real Estate at Dentons, expressed his enthusiasm regarding the venture, stating, "It's a pleasure to advise the Blue Owl Capital and SUPR joint venture as it seeks to grow its portfolio over the coming years." This sentiment is echoed by Rob Thompson, Partner in London at Dentons, who highlighted the transformative potential of the investment in the retail sector.

The transaction is indicative of a growing trend among institutional investors to explore opportunities within the UK grocery market, particularly in light of the ongoing evolution towards omni-channel retailing. As consumer preferences shift, the demand for properties that facilitate both physical and digital shopping experiences is likely to increase.

From an economic perspective, this loan not only reflects the confidence of financial institutions in the robustness of the grocery sector but also underscores the strategic importance of supermarket real estate in the current market landscape. According to a report by the UK Real Estate Association published in April 2025, supermarket properties have consistently outperformed other retail sectors, making them an attractive investment for asset managers.

As the UK grocery sector navigates through challenges posed by changing consumer behaviors and the rise of e-commerce, investments like these position Blue Owl Capital and SUPR favorably to capitalize on future growth opportunities. The implications of this loan extend beyond immediate financial benefits, potentially influencing market dynamics and competitive strategies in the supermarket industry.

In conclusion, the £215 million secured term loan facilitated by Dentons marks a crucial development in the investment strategies of Blue Owl Capital and SUPR. As they move forward, industry watchers will be keen to observe how this partnership evolves and the impact it may have on the UK grocery market at large.