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Supermarket Income REIT raises £45m in oversubscribed issue

Supermarket Income REIT raises £45m in oversubscribed issue – Supermarket Income (Supr) has raised £45m through an ordinary share issue that is expected to be deployed towards the acquisition of two new supermarket assets. SUPR announced the share issue earlier this month with an initial target raise of £25m.

The company owns six UK supermarket assets, independently valued as at 31 December 2018 at £320.6m. All these assets operate both as physical supermarkets and as online fulfilment centres (for home delivery and/or click and collect) on large flexible sites near to population centres. The assets benefit from long, upward only, retail price index (RPI) linked leases, with a weighted average unexpired lease term of 19 years across the portfolio. They are let to large UK supermarket operators (Tesco, Sainsburys and Morrisons).

About Supermarket Income REIT

Supermarket Income REIT is focused on investing in a diversified portfolio of principally freehold and long leasehold operational properties, let to UK supermarket operators, which benefit from long term growing income streams with high quality tenant covenants. The company’s assets provide long-term RPI-linked income, from institutional grade tenants with multi-billion-pound revenues (Tesco, Sainsbury’s, Asda and Morrisons). There is also the potential for capital growth through active asset management opportunities. The company looks buys assets in suburban locations and with low site cover. Their stores are located in highly-populated residential areas, with strong transport links. The managers say that the strong property fundamentals of the company’s sites facilitate the potential for alternative use over the longer term, for example through change of use to residential. They target assets which offer near-term asset management opportunities, such as the installation of green energy improvements and/or the development of surplus car parking spaces. The company invests at least 80% of its gross asset value in properties let to the United Kingdom supermarket operators. It may invest up to 20% of its gross asset value in assets that are let to non-supermarket operators.

SUPR: Supermarket Income REIT raises £45m in oversubscribed issue

 

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