UK REIT Supermarket Income has unveiled plans to raise up to £65 mln (€74 mln) through the issue of up to 64 million new shares at 101 pence apiece.
The offering represents a slight discount to the company's closing share price of 102 pence on the day prior to the announcement, and reflects a premium to the firm's last reported NAV per share of 96 pence as at 31 March 2018.
Supermarket Income said it has identified three acquisition opportunities worth a total of £157 mln, with one asset currently under exclusivity and another two in advanced due diligence. The proceeds from the issue, together with existing debt finance, will be used to fund the acquisition of two of the target assets for a total price of around £104 mln.
The offering has yet to be approved by shareholders.
Nick Hewson, chairman of the company, said: 'These new assets all meet our investment criteria and, once purchased, will enhance our portfolio by extending weighted average lease length, increasing portfolio net initial yield and providing further diversification.'
To date, Supermarket Income has bought four shopping centres for £210.5 mln.