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Supermarket Income Reit has deployed the proceeds of its £100m (R2.18bn) equity raise into a £222m portfolio of grocery and retail properties as the group seeks to broaden its exposure beyond supermarkets.The UK-based property group said on Friday it had acquired six grocery assets for £104m, following its announcement in July that it had exchanged contracts to acquire a further three supermarkets for £118m.The group said the proceeds of the equity raise had now been fully deployed, with the combined transactions delivering an average net initial yield of 6.6% and a weighted average unexpired lease term of 10 years.The latest acquisitions include a 6.900m2 Sainsbury’s supermarket in Macclesfield and an 7,400m2 Morrisons store in Leeds, both secured on triple-net leases with 13 years remaining.The group also acquired a 4,650m2 M&S-anchored retail park in Nottinghamshire, a Co-op food store in Birmingham and an M&S-anchored scheme in Glasgow.The group said it had also exchanged contracts to acquire a 6,200m2 Sainsbury’s grocery distribution centre in Avonmouth. The property has a 14-year lease and potential for rental growth.“These acquisitions add six high-quality grocery assets to our portfolio, marking the completion of the deployment of the proceeds of our £100m equity raise in July," said CEO Rob Abraham.He said the transactions would further diversify the portfolio by adding exposure to grocery distribution and grocery-anchored retail alongside the group’s core UK food-store portfolio.Business Day
