Macfarlanes advises Supermarket Income REIT on £200m equity fundraise, £99.4m supermarket acquisitions and £47.6m loan facility

19 September 2019

UK supermarket real estate investor, Supermarket Income REIT plc, has turned again to Macfarlanes for assistance with a £200m equity fundraise and the acquisition and financing of two supermarket stores with a combined value of £99.4m.

The equity fundraise, which launched on 12 September, comprises a placing and offer for subscription of up to £50m and a placing programme of up to £200m.

In April this year, Supermarket Income REIT acquired a Tesco Extra supermarket in Mansfield, Nottinghamshire from the Charities Property Fund for £33.7m in cash plus 10,922,330 new ordinary shares in Supermarket Income REIT. 

This was followed in August by the acquisition of a Sainsbury's supermarket in Preston, Lancashire from Legal & General for £54.4m and an associated £47.6m loan facility with Dekabank Deutsche Girozentrale for both the financing of the Sainsbury’s supermarket in Preston and the refinancing of the Tesco supermarket in Mansfield.   

Since its IPO in 2017, Macfarlanes has assisted Supermarket Income REIT with a number of fundraisings and transactions to build its portfolio of supermarket real estate assets in the UK.

The Macfarlanes team on the equity fundraise was led by corporate M&A partner Robert Boyle, with assistance from corporate M&A senior counsel Mark Slade and corporate solicitor Alex Critchley. Tax expertise was provided by tax and reward partner Jeremy Moncrieff alongside solicitor Mark Petch. 

The Macfarlanes team on the acquisitions and financing was led by real estate partner Nick Barnes and finance partner Colin Morgan with assistance from real estate solicitors Rebecca Ashton and Erin Gilliland and finance solicitor Chris Barrett. Tax expertise was provided by tax and reward partner Jeremy Moncrieff alongside solicitors Catherine Hill and Mark Petch, with corporate and M&A senior counsel Mark Slade providing advice on the corporate aspects.   

Robert Boyle comments: “Supermarket Income REIT is a client with significant momentum. We are delighted to have assisted with these substantial transactions that significantly grow the size of the business.”