UK asset manager Prupim announced on Wednesday that it has acquired three Sainsbury supermarkets in the UK for EUR 125 mln (EUR 148 mln). The sale-and-leaseback transaction was carried out on behalf of the M&G Secured Property Income Fund.

The deal covers Sainsbury's superstores in Worcester, Truro and Huddersfield, which are leased for 25 years with rent reviews linked to the retail price index.

'These assets, which offer long-term income from a high-quality tenant, with the added security of good quality underlying real estate, meet the needs of institutional investors in the fund,' Steffan Francis, director of fund management at Prupim, said. 'Pension schemes in particular are increasingly attracted to this Fund as properties such as these can help address inflation risk at a lower cost than equivalent government bonds.'

M&G Secured Property Income Fund was launched in 2007 to incest invests primarily in UK commercial real estate with fixed or inflation-linked rental uplifts. Many of its investments have been in sale-and-leaseback constructions.