Supermarket Income REIT is seeking to raise at least £100m through a new share issue to fund acquisitions.
The REIT is in negotiations on four properties with a combined value of £230m and has a further pipeline of nine assets valued at £184m.
It will offer shares at 106p, a 3.2% discount to the closing price of 109.5p yesterday, 3 March, and a 1.9% premium to the company’s EPRA NTA per share of 104p at 31 December.
Together with debt, the finance will enable some of the acquisitions. If the target size is exceeded, it will add further properties to the target list.
Supermarket Income has also bought its first property in Wales, a 46,000 sq ft Tesco supermarket in Prestatyn. It made the £26.5m purchase from Ediston Property Investment Company at a net initial yield of 5.3%.
Chairman Nick Hewson said: “Omnichannel supermarket property has proven to be highly robust, as demonstrated by our 100% rent collection in 2020 and growing investor interest in the grocery property sector.
“With an attractive pipeline of assets in place, this fundraise will enable the company to continue to execute on a number of transactions that meet our stringent criteria, building on its strong track record by investing in additional key omnichannel properties let to some of the UK’s largest supermarket operators.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
