Supermarket Income REIT PLC (LSE:SUPR) announced plans to raise £100mln via a placing and an offer for subscription.
Shares will be placed at 115p each, a 4.2% discount to Wednesday’s closing price and a 6.5% premium to the company’s last reported EPRA NTA per share as of 30 June.
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The grocery-focused real estate investment trust will use the cash to make more acquisitions, diversify its portfolio and capitalise on its strong position in the UK supermarket market.
The firm’s investment adviser, Atrato Capital, has identified opportunities including four assets with a total value of £180mln, with three of them currently under exclusivity and an additional asset in advanced due diligence.
It has also found a pipeline of seven assets with a total value of £420mln that meet the group's acquisition criteria.
Supermarket REIT said the proceeds of the placing will allow it to buy some of the target assets, and if it raises more cash it will consider buying more assets on the pipeline.
"The sustained growth in grocery sales, including the increased penetration of online, is driving value creation in the supermarket investment market,” said chairman Nick Hewson.
“The company has carefully grown its portfolio to over £1.4bn through selective and accretive acquisitions, whilst delivering investors a stable and growing income return.”