Supermarket Income Reit Share Discussion Threads

[jonwig] 11/4/2022 09:13

chucko - the form is self-certification: no-one will knock on the door to verify what you sign. But it does mean you're let loose if you lose money, you've no redress.

There are other absurdities such as ii's when I could apply for a new issue but they wouldn't let me buy more in the open market, as there was no KID available. (There was, but ii didn't have it.)

[chucko1] 11/4/2022 08:44

This is precisely what HL said:


"An increasing number of securities are not being made available to Retail Investors, but are restricted to Qualifying and Professional Investors only. This saves costs to the issuer/selling party as they do not need to disclose the same level of detail. It also means that investors are afforded fewer protections on the basis that they are more knowledgeable and able to accept an increased level of risk.

If you believe that you are a Qualifying and Professional Investor and so should be classified as a Professional for the purposes of a particular deal then please complete the attached form honestly and return to us either electronically by return or via the post. Subject to you warranting that you meet the regulatory requirements we will then be able to place the deal.

If you have any doubt about the form please contact your legal advisor. HL does not give advice to Qualifying Professional Investors.

The attached PDF form can be completed electronically and must be returned to [e-mail] from the email address registered to your Hargreaves Lansdown account.

Please follow completion of this form up with a call to our dealing desk on 0117 980 9800 so that we may acknowledge receipt, verify your eligibility to proceed and confirm that your instruction has been accepted.

Yours sincerely,"

SUPR cannot distinguish between those who have previously held SUPR and those who have not. So HL believe this method is necessary to "protect" its Retail customers, even those with a current holding. Might have been nice if they had protected their Woodford customers, but that was not a "sophisticated" product. The rules are insane, but they are what they are and not too difficult to navigate. Or at least in the case of HL.

[bscuit] 10/4/2022 13:17

Chucko, looking back we never knew how scaling back was done, but impression was that retail investors were met in full. Certainly 110,000 is a big slug so scaling back may apply.

[chucko1] 10/4/2022 11:58

Going into the SIPPs anyway. How much was the previous Placement scaled back by? Cannot recall. The Open Offer was not scaled back, but the overall demand was very high and even after an increase in deal size, they had to cut somewhere.

[bscuit] 10/4/2022 07:45

Answer in Gov.uk - Advice for investment Managers. Eligible shares include Offers for sale subject to some restrictions, but specifically does not include an Intermediary Offer or a placing.

[williamcooper104] 09/4/2022 22:46

Thanks - saved me a call

[bscuit] 09/4/2022 21:31

Deleted duplicate post

[bscuit] 09/4/2022 21:31

I spoke to AJB to apply for 110,000 in my SIPP (flat rate fee and no SD makes it worthwhile)- I expect to be scaled back - and the person to whom I spoke could see no reason, why I shouldn’t be able to apply in my ISA, though I have asked for a secure message confirmation. However I think the ISA problem is, I think, related to the fact that ISA purchases have to be in the market.

[chucko1] 09/4/2022 21:12

This is how it is with HL:

1. You need to fill in a QIQ form. This is the form that certifies you as a professional investor.

2. This form is good for ONE TRADE ONLY. You define the trade to be the purchase of SUPR stock in the Placement of whatever size takes your fancy.

3. You pay HL £100 for the privilege of them placing the trade for you. This £100 is not size (of trade)-dependent. You also pay them £50 when you want to sell the shares, but ONLY if you do it by phone. No need for that as we are all more than able to use the internet!!

4. You CANNOT buy the shares into an ISA. Apparently, I was told by phone, this has something to do with HMRC.

5. You fill in the form and send it back to HL. You can then phone them and tell them how many you are looking to buy. You MUST have sufficient cleared funds when placing the order.

Given that there is no difference between the Placement shares and those we may already own, this is all rather baffling. But Placement shares are regarded as a sophisticated product. I am not gong to argue, I am just going to take a deepish breath and do what they ask.

[chucko1] 08/4/2022 09:23

When it's an Open Offer, that is correct. But not when it is only a placement. That appears to be the pattern over the last few raises, and I have bought into each one where I could.

[williamcooper104] 08/4/2022 09:22

Yes - you need to log onto the web platform not the phone app - and there's a corporate action button that you press, you then just need to ensure that you've enough cleared funds in your account to cover your sought allocation and it all happens - pretty efficient

[chucko1] 08/4/2022 09:18

Has anyone had experience of this course of action via HL?? If not, I will phone them today or Monday.

[bscuit] 07/4/2022 23:00

Oops! Yes only £100, so reasonable on a big application, which I intend to do this time.

[chucko1] 07/4/2022 21:34

Not a £100k charge, I hope!!

But very useful information. Mad that it has to be done this way.

[bscuit] 07/4/2022 21:31

The AJB position is consistent with previous issues. I set my first one up direct with Stifel and had AJB make the arrangements. On the second and subsequent applications I had AJB deal direct with Stifel. On those occasions I was talking £20-50K. the £100k was the only charge.

[janeann] 07/4/2022 18:58

Interesting message from AJB........

Unfortunately, we aren’t able to facilitate the Primary Bid offer, however, there’s two separate offerings being made available. The other is a placing through Stifel which we can accommodate, though only within a SIPP or Dealing account and there’s a charge of £100 as it’s a manual process with Stifel to place the order. The order would be made with our Dealing Services Team over the phone.

[jg231] 07/4/2022 16:57

I just contacted investor relations at Atrato Capital (the investment adviser) and they told me that they expect Hargreaves, Interactive Investor and AJ Bell to allow orders in the placing. They said it usually takes several days for the platforms to put it up on the website.

[chucko1] 07/4/2022 16:55

Yes, but even a 4% increase with rates at stupid low levels is valuable. It would be a lot tricker with rates at 8% which is typically what you would have experienced with RPI circa 6%.

QE has messed up a lot of these relationships and I suspect we will experience a rough ride as we pivot into QT. Exactly what, I cannot say - no one has much of a clue, which is partly why it will be a rough ride.

[williamcooper104] 07/4/2022 15:45

Pretty sure the average cap is 4 percent - there is a floor too but can't remember what that is I suspect if we did get the full RPI (eg CPI plus 150bps at higher CPI levels) it wouldn't take too long to get into over-rented asset valuations given as you say general margin pressures

[jonwig] 07/4/2022 15:20

Supermarket price wars, competition from Germans, etc:



Can supermarkets pass on price increases of over 7%, when they will be facing costs and staff wage increases of similar or greater size? (Think: imports, ingredients.)

Will a potential shortage of drivers (unless paid a lot more) destroy wafer-thin margins on delivery?

Will SUPR be forced onto the rent increase cap (usually 4%) when RPI is double that?

In other words, don't expect too much inflation protection of rental income.

In their latest fundraising RNS they say:

Currently, 85 percent of the Company's existing rental income is directly linked to growth in inflation, and historically there has been a high degree of correlation between inflation and food prices, which means that the ability of our grocer tenants to pay the rental income remains sustainable in the long term.

OK, but I thought there was a mostly cap rather than full protection. Is that wrong?

[chucko1] 07/4/2022 14:09

On HL, I have done that twice. Once when it was PB only and they could not oblige, and then 6 months ago, when they could! But 6 months ago it was also an Open Offer.

[apollocreed1] 07/4/2022 14:05

The interesting thing about Hargreaves Lansdown is that they rarely offer the IPOs that you can get on AJ Bell and II, but they do have a comment on their website which might be worth following up: "For any IPOs not detailed in this section which you are interested in, please contact our dealing desk on 0117 980 9800 and we will investigate whether you are able to participate in the IPO."

[williamcooper104] 07/4/2022 13:49

Great - let's hope they allow you do it it direct - the wording of the RNS implies that it's only through PB

[janeann] 07/4/2022 13:13

Thanks WilliamC - sent the relavent para to AJB and Ill seewhat response I get!

[williamcooper104] 07/4/2022 12:51

From PB - at least they got back quickly Good morning,Thanks for getting in touch. I can confirm that PrimaryBid is a platform for individual investors only. This means unfortunately we do not offer corporate accounts. The only way you are able to subscribe to PrimaryBid offers is through our app available on smartphones or tablets using your debit card. We will then arrange for any shares purchased to be transferred into your general investment account.The only alternative method of subscription would be to have your broker make a subscription on your behalf. I will advise this is not a service that all brokers offer and the ones that do have different requirements surrounding this. You would need to speak with your broker directly to see if this is a possibility. Using this method the funds would come directly from your broker account rather than your debit card.Hope this helps explain. Please let us know if you have any questions and we will be happy to assist.