Supermarket Income REIT raises £100M to fund £216M grocery property pipeline

What's the deal? Supermarket Income REIT has raised £100 million through a post-IPO equity issue, selling 120,481,928 new ordinary shares at 83 pence each. That represents about 10% of its existing share capital, expanding the trust's equity base.

How it was done: The raise ran across a UK placing, a South African placing, and a retail offer. The company said it drew participation from both new and existing investors.

What's the endgame? The net proceeds, together with leverage, will finance a nine-asset pipeline valued at roughly £216 million. That supports the trust's goal to double its portfolio and drive earnings growth.

Who they are: Supermarket Income REIT is a UK-listed real estate investment trust that owns and manages grocery-led retail property, leasing to supermarket operators on long-term terms. It carries a primary listing in London, a secondary listing in Johannesburg, and a current market cap of £1.11 billion.

Why now? The capital increase is subject to shareholder approval at a general meeting on August 3, followed by admission of the new shares in London and Johannesburg. After that, the company will have 1,366,721,113 voting shares in issue.

The signal: The £100 million raise ranks in the 95th percentile among UK post-IPO equity rounds in the sector over the past 48 months, based on 281 comparable deals. It signals continued investor appetite for income-generating grocery property backed by long-term leases.

Image credit: w_lemay