Supermarket Income REIT has unveiled plans for a £50m proposed equity issue to fund a transaction pipeline for "six earnings enhancing transactions".

The issue comprises 12 assets across convenience stores, supermarkets and a distribution centre for an aggregate consideration of £65.2m across six transactions.

The transactions include a direct off-market deal with Sainsbury’s for a portfolio of seven convenience stores for £19m, and a sale and leaseback on a distribution centre in Darlington for £47m, which is also owned by Sainsbury’s, with Supermarket Income REIT’s share standing at £23.5m.

Other identified acquisition opportunities include a scheme anchored by a small format grocery store in Woking, let to Waitrose for £14.2m, a small format store in Essex let to Sainsbury’s for £5m and a convenience grocery asset in Surrey let to Tesco, recently acquired for £1.1m.

The issue will comprise an institutional placing, which will be conducted through an accelerated book building process, a placing to selected qualifying investors in South Africa, and a retail offer to be made via RetailBook.

As of 30 September, Supermarket Income REIT owns 140 grocery assets across the UK and France directly or indirectly through its joint venture, with an aggregate value of £2.2bn.

Its management believes it offers a “highly attractive opportunity for investors” to gain exposure to European grocery real estate, with the six transactions designed to continue the execution of its growth strategy, which aims to double the size of its portfolio.

Following the announcement, shares in Supermarket Income REIT dropped 2%.

Supermarket Income REIT CEO, Rob Abraham, said: "This latest equity raise reflects both the strong momentum we have built across the business and our continued confidence in the attractive investment opportunities ahead. Having successfully deployed the proceeds of our July fundraising, we are now capitalising on a further pipeline of high-quality, earnings-enhancing acquisitions.

"These assets will further diversify our portfolio across grocery operators, locations and asset types, while strengthening our income stream and supporting earnings growth. They represent another important step towards our ambition of doubling the size of the portfolio and delivering long-term returns for shareholders."

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