NewRiver to raise at least £200m in placing

Convenience-led UK retail and leisure property specialist NewRiver REIT has announced a proposed firm placing and placing and open offer to raise gross proceeds of at least £200m, at between 330p and 340p per share.

There will be a firm placing of at least £133m and a placing and open offer of at least £67m, with proceeds to be used to fund the consideration of around £60m for the acquisition of the 50% of the shares it does not already own in its BRAVO joint ventures and to finance the £30m of identified (capital expenditure and risk-controlled development. This includes the construction of further convenience stores for the Co-operative and the development of the group's Canvey Island retail park.

The proceeds will also be used to pursue the company's acquisition pipeline, all of which is off-market or selectively marketed.

Chief executive David Lockhart said: "NewRiver has a proven track record of delivering growing and sustainable cash returns to shareholders through its focused strategy of acquiring and managing convenience-led and community-focused retail and leisure assets combined with risk-controlled development and value enhancing active asset management.

"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."

The company said it continues to see opportunities to purchase assets at attractive yields and with the potential to secure good quality income streams which can be distributed to NewRiver REIT shareholders through the quarterly dividend programme. In addition, it said the group's portfolio offers continued potential for capital growth, which has the potential to supplement the income returns generated from its assets.

At 0806 BST, the shares were down 3.8% to 347.70p.