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Supermarket Income Real Estate Investment Trust (Reit) is turning to shareholders for £100m (about R2.2bn) to accelerate an acquisition spree that underscores growing investor appetite for grocery property, one of the few commercial real estate sectors still delivering dependable income growth in an uncertain market.The London- and JSE-listed real estate investment trust plans to use the capital to acquire nine supermarket and grocery distribution assets worth £216m, extending a strategy that has seen it rapidly scale its portfolio while positioning itself as the UK’s largest listed landlord of omnichannel supermarkets.The acquisition pipeline comprises three supermarkets — a Sainsbury’s in Manchester and Tesco stores in Edinburgh and Halifax — as well as six additional UK grocery assets, including five supermarkets and a grocery distribution facility. The nine properties are expected to be acquired in the next three months.The fundraising comes as the group trades at a premium to net asset value after a period of strategic expansion and balance-sheet restructuring.CEO Rob Abraham said the latest acquisitions will move the company closer to its ambition of doubling the size of its portfolio.“This fundraise will enable us to continue executing our growth strategy and build on the significant strategic progress we have delivered over the past 18 months, strengthening our position in a sector where we continue to see compelling opportunities,” Abraham said.The Reit said its acquisition strategy focuses on omnichannel assets that operate as physical supermarkets and online fulfilment centres, alongside properties with strong trading histories, long lease terms, contractual rental uplifts and strong tenant covenants.“The pipeline of assets will be earnings-enhancing and align with our portfolio strategy of acquiring well-located grocery assets with strong trading histories, let on resilient triple-net leases,” the group said. It said the capital raised, with debt, will fund the acquisitions, which it expects will strengthen earnings and support its growth plans.Alongside the institutional fundraising, the group has extended the offer to UK retail investors through the RetailBook platform, giving existing shareholders and new investors an opportunity to participate in the capital raise.Business Day
