Supermarket Income REIT has announced plans to raise £100 mln (€115 mln) through a share issue aimed at financing new acquisitions.
The REIT will issue the shares at a price of 106 pence apiece representing a discount of 3.2% to the closing price of 109.5 pence per existing Ordinary Share on 3 March 2021 and a 1.9% premium to the Company's last reported EPRA NTA per Ordinary Share as at 31 December 2020. The issue is expected to run until March 18.
The company said that it has identified a strong pipeline of opportunities including four assets with an aggregate value of £230 mln and a further pipeline of nine assets with an aggregate value of £184 mln. The issue will also allow it to continue to explore further investment opportunities.
‘Omnichannel supermarket property has proven to be highly robust as demonstrated by our 100 percent rent collection in 2020 and growing investor interest in the grocery property sector,’ said Nick Hewson, Chairman of the company. ‘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.’
Separately, the retail property landlord announced the acquisition of a Tesco supermarket in Prestatyn, North Wales from Ediston Property Investment Company for £26.5 mln (excluding acquisition costs) representing a net initial yield of 5.3%.
Developed in 2013, this 6-acre site is located in the town centre and comprises a 46,000 sq ft net sales area supermarket with 455 car parking spaces and an 8-pump petrol filling station. It is being acquired with an unexpired lease term of 12 years, with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 5.0% cap and a 1.0% floor).
Supermarket Income REIT listed on the London stock exchange in 2017 and has since built up a £1.1 bn portfolio. It currently directly owns 28 UK supermarket assets with an aggregate value of £1.0 bn as well as an interest in a securitised portfolio of 26 Sainsbury's supermarkets.
