Supermarket Income REIT to Raise GBP200 Million in IPO
20 June 2017 - 6:31PM
Dow Jones News
By Olga Cotaga
LONDON--Supermarket Income REIT PLC said Tuesday it is planning
to raise 200 million pounds ($255.2 million) after floating on
London Stock Exchange and that it is targeting a dividend of 5.5%
at first.
Supermarket Income REIT added the dividend will grow
progressively and that it will pay the first one in October.
The company, which will be a real estate investment trust, will
use the money from the initial public offering to buy a diversified
portfolio of supermarkets, it said.
It explained that supermarket property yields have risen over
the last few years, which means prices have decreased, and that
"this presents a significant investment opportunity for
investors."
The REIT has already got exclusivity to buy two properties and
is in advanced talks to buy three more, it said, adding that the
combined value of all assets is of GBP263 million.
The company is looking at supermarkets with long leases of 15
years and at big supermarket customers like Tesco (TSCO.LN),
Sainsbury's (SBRY.LN), Asda and Morrisons (MRW.LN), it said.
-Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter
@OlgaCotaga
(END) Dow Jones Newswires
June 20, 2017 04:16 ET (08:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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