Supermarket Income REIT plc (LSE: SUPR), known for providing secure, inflation-linked, long-term income from grocery properties, has finalised a £170 million refinancing through its first private placement debt issuance and a new unsecured bank facility.

The company has successfully completed a £71.38 million private placement of new senior unsecured notes with institutional investors. The notes, with a seven-year maturity and a fixed rate coupon of 4.44%, were priced on 11 July 2024, with proceeds received on 25 July 2024. These funds will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which had been utilised for the recent acquisition of 17 stores from Carrefour.

Additionally, the company has refinanced its existing £97 million secured debt facility with Deka through a new £100 million unsecured debt facility with ING Bank N.V., London Branch. This new facility includes a £75 million term loan and a £25 million revolving credit facility, priced at a margin of 1.55% over SONIA. The facility, which is interest-only, has a maturity of three years with two one-year extension options at the lender’s discretion, and benefits from forward-starting hedges that cap the interest rate at an all-in cost of 3.0% until January 2026.

Following the refinancing, Supermarket Income REIT’s pro-forma loan-to-value (LTV) ratio stands at 37%. Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, expressed satisfaction with the new arrangements. “We are very pleased at the support we have received from new institutional investors both for the Company’s new unsecured private placement and for the refinancing of the secured facility. The quality of our portfolio continues to appeal to new lenders and allows the Company to access debt financing on favourable terms,” he said.

The successful refinancing will undoubtedly be mentioned at upcoming property networking events in London, offering industry professionals a chance to engage with the project and explore potential collaborations. This move showcases the company’s ability to secure favourable financing terms, which will be a key talking point at various construction business events in the region. For those wondering how to meet property professionals or how to meet property investors, events like these provide a valuable opportunity.

Industry professionals often seek advice on how to contact property investors, and understanding the dynamics of investment events in London can be crucial. Furthermore, for those looking to understand how to win construction contracts, these gatherings are ideal places to learn and network. To meet big investors and learn about the UK’s best property event, attending such events is indispensable.

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