On 12 September 2019, Supermarket Income REIT (SUPR) announced its intention to raise £50m to grow its portfolio (Click here to read our story). However, following approval by shareholders yesterday of the necessary resolutions that were required to allow the fundraise to proceed, the board has announced today that it is doubling the size of the issue to £100m. The board says that this decision reflects the strong level of support from investors during the marketing roadshow as well as the near term investment pipeline.
About Supermarket Income REIT
Supermarket Income REIT is a London stock Exchange Listed real estate investment trust that 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 seeks to build a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income, from institutional grade tenants with multi-billion pound revenues (Tesco, Sainsbury’s, Asda and Morrisons), and the potential for capital growth through active asset management opportunities.
The Company looks to acquire assets with long, annual RPI-linked leases (typically more than 15 years to expiry or first break), and intends to provide investors with a long-term and secure income stream which will grow with inflation.
The company typically 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 their sites facilitate the potential for alternative use over the longer term, for example through change of use to residential.
The manager also targets 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.
You can access the company’s website here