Supermarket Income REIT raises £60M to fund grocery buying spree
What's the deal? Supermarket Income REIT (SUPRDealroom has a profile for this one. Try Dealroom →) has raised £60 million (about $80 million) through a post-IPO equity issue, selling new shares at 82p each. The proceeds will help fund a £65.2 million acquisition pipeline spanning convenience stores, supermarkets, and a distribution centre.
Why now? The raise follows SUPR's £100 million equity issue in July, which it deployed within about two months — alongside debt — into £222 million of grocery properties at a 6.6% average net initial yield. The new shares represent roughly 5.4% of existing share capital.
What's the endgame? The pipeline carries a 7.3% average yield, above the prior portfolio's purchases, and broadens SUPR's exposure beyond supermarkets into convenience stores and logistics. The company has said it aims to double the size of its portfolio.
Deals in the pipeline include seven SainsburyDealroom has a profile for this one. Try Dealroom →'s convenience stores for £19 million and a Darlington distribution centre, with SUPR's share at £23.5 million. The REIT expects pro forma loan-to-value to stay near 45%.
What could go wrong? Repeated share issuance dilutes existing holders. The open question for investors is whether income growth from the new assets will justify that dilution.
The signal: At £60 million, this raise ranks around the 92nd percentile of post-IPO equity rounds for UK energy-and-infrastructure names over the past four years. It points to an active, acquisition-led growth strategy — not a balance-sheet rescue — as SUPR keeps tapping equity markets to expand a defensive, income-focused portfolio.
Read more: uk.marketscreener.com
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