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NewRiver secures equity
Posted on Friday, 16 June 2017 10:30
UK non-residential real estate investment trust (REIT) holding company NewRiver REIT has unveiled a share placing valued at up to GBP 133.00 million in order to fund the purchase of BRAVO Joint Ventures.

The company is issuing a maximum of 40.30 million shares, representing a 13.7 per cent stake in the group’s enlarged capital, at GBP 3.40 apiece to institutional investors.

Chief executive of the firm, David Lockhart, noted: “The proceeds of the proposed capital raising will be deployed into accretive acquisitions, including the purchase of the remaining units in the BRAVO JV, and our exciting programme of risk-controlled developments.”

NewRiver currently holds 50.0 per cent of the units in BRAVO Joint Ventures and is looking to snap up the remaining interest.

In a separate announcement, NewRiver has announced a rights issue valued at up to GBP 67.00 million.

The group is placing a maximum of 20.10 million shares at a price of between GBP 3.30 and GBP 3.40 apiece to new and existing institutional investors.

Liberum Capital, Peel Hunt, Kinmont, Barclays and Bell Pottinger Corporate & Financial are all advising on the cash calls, which are subject to a number of customary closing conditions, including the green light from shareholders.

The stocks are expected to be admitted to trading on 6th July 2017.

No further details on the equity dilutions were disclosed.

London-listed NewRiver is billed as a leading property investor, asset manager and developer specialising in the UK retail sector.

The company was founded in 2009 and claims to be one of the UK’s largest shopping centre owners with assets under management of GBP 1.30 billion, comprising 33 shopping centres, 22 retail warehouses, 15 high street assets and a portfolio of 344 pubs located in its home country.

Last year, UK-based non-residential REIT NewRiver Retail completed a restructuring by creating new English-incorporated parent company NewRiver REIT for an undisclosed amount.

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