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Supermarket Income REIT plans £75mln fundraising as it eyes ‘attractive opportunities’ across marketplace

The trust said the funds should allow it to purchase two assets with a value of around £115mln, although if the cash raised exceeded its target it may consider more acquisitions

Supermarket Income REIT PLC - Supermarket Income REIT plans £75mln fundraising as it eyes ‘attractive opportunities’ across marketplace

Supermarket Income REIT PLC (LON:SUPR) has unveiled plans to raise £75mln through the issue of new shares as it eyes a number of “attractive opportunities across the marketplace”.

The investment trust said that it will raise the funds through the issue of shares at a price of 103p each, a 5.7% discount to its closing price on Wednesday.

READ: Supermarket Income REIT comfortable on busy grocery store sector

The company said the funds should allow it to purchase two assets with a value of around £115mln, while the company has also identified a further pipeline of assets with an approximate value of £180mln.

Supermarket Income REIT added that if the amount of funds raised exceeded its target, it will “consider the possibility of acquiring additional assets”.

“The ability of omnichannel supermarkets to supply the local communities they serve has never been more important than it is now in response to [coronavirus]. As a board, we are fortunate during these difficult times to be able to raise capital to offer liquidity to vendors of supermarkets who may need the proceeds for other purposes”, Supermarket REIT chairman Nick Hewson said in a statement.

“With the sector trading robustly in the current climate, our investment strategy remains focused on delivering stable, long-term, inflation-protected income through investing in the future model of UK Grocery", he added.

The shares were 1.1% lower at 108p in early trading on Thursday.

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Quick facts: Supermarket Income REIT PLC

Price: 108.28 GBX

LSE:SUPR
Market: LSE
Market Cap: £512.84 m
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