Supermarket Income REIT announced on Friday that it has raised gross proceeds of £150 mln (€175 mln) through an enlarged share issue aimed at financing new acquisitions.
In a statement, Supermarket REIT said that it has decided to increase the size of the operation from £100 to £150 mln ‘after careful consideration of the strong level of support and quality of demand from investors in the issue alongside the investment adviser’s confidence in executing on the pipeline’.
Notwithstanding the increase, investor demand ‘substantially’ exceeded the maximum size of the issue, the company added.
Nick Hewson, Chairman of the Company, said: ‘We are extremely grateful to our existing shareholders and new investors for their strong support exhibited by the exceptional level of demand for this upsized capital raise. Our pipeline of transactions is strong and we have seen an increase in attractive investment opportunities since the marketing roadshow began and therefore expect to be able to deploy efficiently the proceeds of this latest raise into high quality, long let, omnichannel supermarket assets that support our investment strategy.’
The REIT issued 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 will be used to capture 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.
