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."

The transaction team was led by Real Estate Partner Alex Coulter, who coordinated a cross-practice group including Real Estate Partner Brian Hutcheson, Counsels Caroline Stead and Katie Todd, Senior Associates Emma Foster, Helen Cairns, Verity Houlker and Gaelen Doherty, Associate Giulia Ross, and Trainee Kelly Johnson. The wider team also included Property Litigation Partner Bryan Johnston and Senior Associate Thomas Nolan; Corporate Lending and Real Estate Finance Partner Simon Tweedle and Associate Imogen Beaver; Corporate Partner Michael Snook and Associate Daniel Kaye; Construction Partner Mark Macaulay; Energy Partner Helen Bowdren and Associate Shanie Earl; and Regulatory and Investigations Senior Associate Katy MacAskill; with support from Real Estate Partner, Stewart Middleman in respect of insurance aspects.

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