UK REIT NewRiver, which focuses on convenience-led UK retail and leisure assets, has announced a proposed £200 mln (€227 mln) fund raise through an accelerated book build and open offer.
The FTSE 250-listed firm said that the decision reflected its confidence in the UK's provincial retail market. Shares are being offered at a minimal discount to the closing price as of June 14th and at a premium to net asset value.
'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,' commented David Lockhart, Chief Executive of NewRiver REIT.
NewRiver has been managing the assets in its BRAVO joint venture with PIMCO since its inception in 2013. It plans to buy out the 50% it does not already own of the jv for around €60 mln.
The fund raise will seek £133 mln (€151 mln) of capital through the issue of new ordinary shares plus additional proceeds of around £67 mln (€76 mln) by way of a placing and open offer at a price in the range of 330-340 pence per ordinary share.
NewRiver has approximately 1.9 million ft2 of property in its development pipeline requiring capital expenditure in excess of £42 mln (€48 mln) up until 31 March 2018. £30 mln (€34 mln) of the proceeds of the capital raising have been allocated for this purpose.
The group last raised capital in January 2016 when it raised gross proceeds of £150 mln (€170 mln). Since that date, it has spent in excess of £158 mln (€179 mln) on acquisitions and £18.5 mln (€21 mln) on development.
The £800 mln (€909 mln)-valued company is the UK’s third largest shopping centre owner with 48 primarily town centre assets as well as 22 retail warehouse and c.344 pubs. It owns retail assets in 60 different towns and cities across the UK.
The joint bookrunners for the fund raise are Liberum and Peel Hunt.
