A further step in growth plans
The acquisitions include two direct transactions with Sainsbury’s: seven
convenience stores for £19m (6.2% NIY) on new 15-year inflation-linked leases,
and a £47m distribution centre in Darlington (8.0% NIY), leased to Sainsbury’s
and sublet to Argos. SUPR is acquiring a 50% interest (£23.5m) in the warehouse
through its Blue Owl joint venture (JV). The lease has 10 years remaining, and
SUPR will receive a 0.6% management fee on its JV partner’s share. Other
investments comprise a £14.2m Waitrose-anchored scheme in Woking, a £5m
Sainsbury’s store in Essex, a £1.1m Tesco store in Surrey and a Lidl pre-let
development contribution of up to £2.5m. The expired Waitrose lease offers scope for renewal.
The £60m issue follows July’s £100m raise, deployed with borrowing into £222m of acquisitions within six weeks. The 73.2m new shares (5.4% of existing capital)
were allocated through institutional and South African placings and a UK
RetailBook offer. SUPR says allocations respected pre-emption principles where
possible.
The issue proceeds will substantially fund the targetted acquisitions, requiring only modest additional borrowing.

We estimate a pro-forma loan-to-value (LTV) of less = than 45% (43.9% at June 2026), with net debt/EBITDA of 7–8x. Although above the normal upper LTV target of 40%, management considers this appropriate at the current stage of the property cycle. A £445m refinancing in July reduced the average cost of debt to 4.4%, predominantly fixed or hedged, and extended average maturity to 3.8 years.

The latest acquisitions are another step towards SUPR’s ambition to at least double its portfolio to £4bn or more supported by an actionable acquisition pipeline exceeding £500m highlighted at the September FY26 results.