Supermarket Income secures £100 million revolver to increase portfolio

By Sarah Lizee

Olympia, Wash., Aug. 30 – Supermarket Income REIT plc secured a £100 million revolving credit facility from HSBC Holdings plc, according to a press release.

The facility carries an initial three-year term and two further one-year extension options.

Once drawn, the facility has an opening margin of 160 basis points over Libor which is currently equivalent to a total cost of 2.2% per year.

Supermarket Income said the revolver will provide it with flexible capital to fund the growth of its property portfolio while also allowing it to manage its capital structure in line with its investment policy.

The company added that it will follow a prudent approach to gearing with medium-term borrowings as a percentage of gross assets expected to be about 30 to 40%.

“We have secured a flexible revolving credit facility ensuring we can maintain an efficient balance sheet and enabling us to act quickly on attractive investment opportunities. We were very pleased with the level of bank interest we received on this transaction which reaffirms the strong fundamentals of this asset class,” Ben Green, director of Atrato Capital Ltd., the company’s investment adviser, said in the release.

Supermarket Income is a closed-ended investment company specializing in supermarket real estate. Atrato Capital is a London-based investment manager.

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