Supermarket Income REIT launches £50m equity raise to fund acquisitions

3rd Nov 2026 12:52

(Sharecast News) - Supermarket Income REIT said on Tuesday that it was launching a £50m equity raise to fund six acquisitions.

The real estate investment trust said it has identified six earnings-enhancing transactions comprising 12 assets for £65.2m, at an average net initial yield of 7.3%. The acquisitions are expected to complete by December.

Two of the acquisitions are direct transactions with Sainsbury's and comprise a portfolio of seven convenience grocery assets let to the supermarket retailer being acquired in an off-market transaction directly with the operator for £19m due to complete shortly. The transactions with Sainsbury's also include a distribution centre in Darlington.

The company has also identified three further acquisition opportunities including a scheme anchored by a small format grocery store in Woking let to Waitrose for £14.m, a small format store in Essex let to Sainsbury's for £5m, and a convenience grocery asset in Surrey let to Tesco recently acquired for £1.1m.

As announced in September, the trust is also working in partnership with Lidl to develop a new food store, pre-let on a 15-year lease. This requires a capital contribution capped at £2.5m and is expected to complete by the end of this month.

Chief executive Rob Abraham said: "This latest equity raise reflects both the strong momentum we have built across the business and our continued confidence in the attractive investment opportunities ahead. Having successfully deployed the proceeds of our July fundraising, we are now capitalising on a further pipeline of high-quality, earnings-enhancing acquisitions.

"These assets will further diversify our portfolio across grocery operators, locations and asset types, while strengthening our income stream and supporting earnings growth. They represent another important step towards our ambition of doubling the size of the portfolio and delivering long-term returns for shareholders."

At 1250 GMT, the shares were down 1.8% at 82.90p.

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