Supermarket Income REIT said on Wednesday that it has raised gross proceeds of £200 mln (€237 mln) through a significantly oversubscribed issue of 174 million new ordinary shares at 115 pence apiece.
The share issue was initially planned at £100 mln but the company's board decided to increase the size after receiving strong support from investors and in view of the investment adviser’s confidence in executing on the pipeline and an increase in the availability of attractive investment opportunities since the marketing roadshow began.
Notwithstanding the increase in the initial issue, investor demand exceeded the maximum size of the issue and as such, a material scaling back exercise was undertaken.
Nick Hewson, Supermarket Income REIT's chairman, said: 'Demand for this issue has been exceptionally strong, resulting in us doubling the size of the capital raise.With the £180 mln of Target Assets already under exclusivity and a robust pipeline of £420 mln in potential further acquisitions, we are confident that we will be able to deploy proceeds efficiently into a number of attractive omnichannel supermarkets let to some of the UK's largest supermarket operators to deliver our investors with a stable and growing, inflation-linked income return.'
