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Real Estate

Supermarket Income REIT a hold following proposed equity raise

The retail investment company announced plans to raise roughly £175mln through the issue of new shares

Supermarket Income REIT PLC (LSE:SUPR) remains a "hold" according to Peel Hunt, with the target price set at 125p.

The retail investment company announced plans on Thursday to raise roughly £175mln through the issue of new shares at 121p.

That would represent a 4.3% discount to its closing price on 6 April, but just over a 7% premium to its EPRA net tangible assets.

The money used will go towards the purchase of some of the assets in its pipeline.

That would include £150mln worth of property under exclusivity, of which £120mln is in advanced due diligence, and a further £400mln worth of assets that meet the company’s investment criteria.

Peel Hunt anticipates that if it raises more than the £175mln targetted, it may look to acquire additional assets.

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