SUPR Brings £1.78 Billion Portfolio to South Africa’s JSE

SUPR, a United Kingdom-based Real Estate Investment Trust (REIT) specializing in supermarket properties, is set to make its secondary listing on the Johannesburg Stock Exchange (JSE) this Friday, 13 December 2024. This move provides South African investors with an exciting opportunity to access a growing international portfolio focused on one of the most resilient and essential sectors—grocery retail.

Currently listed on the London Stock Exchange (LSE) and included in the FTSE 250 Index, SUPR brings a diversified portfolio worth £1.78 billion (R40 billion) as of June 2024. This marks a significant milestone in its growth journey, underscoring its commitment to expanding its investor base and footprint across new markets.

SUPR’s portfolio is unique, featuring 73 omnichannel supermarket properties spread across the UK and France. These properties play a dual role, supporting traditional in-store shopping while functioning as last-mile fulfillment centers for online grocery services, including home delivery and Click & Collect. This hybrid model aligns with shifting consumer behaviors toward convenience and e-commerce, making SUPR’s assets future-ready and highly appealing.

The portfolio boasts well-known retail tenants, including:

• Tesco
• Sainsbury’s
• Carrefour
• Marks & Spencer
• Waitrose
• Asda
• Aldi
• Lidl
• Morrisons

SUPR’s investments are underpinned by the growth of the UK grocery market, which has expanded by 35% since its LSE debut in 2017—from £185 billion (R4.2 trillion) to £252 billion (R5.7 trillion) in 2024.

SUPR’s commitment to expanding its geographic reach was evident in its 2024 acquisition of 17 omnichannel stores in France through a €75.3 million strategic sale and leaseback agreement with Carrefour. This transaction not only bolsters SUPR’s French footprint but also diversifies its portfolio geographically, enhancing resilience and investor appeal.

Its properties now include 17 assets in France and 56 in the UK, with a strong annualized cash rental income of £113.1 million (R2.5 billion) as of mid-2024.

SUPR’s Secondary Listing on the JSE

SUPR’s JSE listing represents a significant opportunity for South African investors to access high-quality, income-generating assets in established European markets. This listing includes 1,246,239,185 ordinary shares with a nominal value of one penny each, trading under the share code SRI.

By leveraging the JSE’s fast-track listing process, SUPR joins the growing list of international REITs seeking exposure to South Africa’s sophisticated investor base. As Sam Mokorosi, Head of Origination and Deals at the JSE, noted, international REITs like SUPR and healthcare-focused REIT Assura have been well-received by local investors.

SUPR’s focus on supermarket properties taps into a resilient asset class that has proven to be recession-resistant. Grocery stores provide essential goods, ensuring consistent foot traffic and stable rental income. Moreover, the hybrid omnichannel model positions SUPR’s assets to benefit from the growing demand for e-commerce solutions.

SUPR’s innovative approach includes leveraging its properties for multiple uses, ensuring profitability through both traditional retail and fulfillment operations. This dual functionality makes SUPR an attractive option for investors seeking exposure to the dynamic and evolving grocery market.

SUPR’s leadership emphasizes the company’s commitment to creating value for its investors through strategic acquisitions and tenant partnerships. Its omnichannel stores not only generate reliable rental income but also align with environmental, social, and governance (ESG) standards by reducing logistical inefficiencies in grocery delivery.

Looking ahead, SUPR plans to further diversify its portfolio, invest in technology-driven efficiency, and expand its footprint in both the UK and France.

Why the JSE?

South Africa’s JSE has become an attractive platform for international REITs looking to tap into a sophisticated and diverse investor base. SUPR’s listing on the JSE reflects confidence in the South African market and offers local investors access to one of Europe’s fastest-growing and future-ready property sectors.

With its strong focus on innovation and diversification, SUPR’s listing is a win-win for both the company and South African investors.

SUPR’s secondary listing on the JSE marks a new chapter in its growth story. Offering access to a £1.78 billion portfolio of future-proofed grocery real estate, SUPR is well-positioned to deliver long-term value. This move underscores the growing integration of global markets, allowing South African investors to benefit from the stability and growth potential of European grocery retail.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com