NewRiver REIT has announced the results of its capital raising, which was conducted as an accelerated book build. It says that subject to the necessary resolutions being passed at the General Meeting ,which is expected to be convened to be held on or around 4 July 2017, in aggregate, 67,164,179 New Ordinary Shares are to be issued at 335 pence per New Ordinary Share, raising gross proceeds of approximately £225 million (approximately £220 million net of expenses). it says that the 67,164,179 New Ordinary Shares represent 28.2 per cent. of the Existing Ordinary Shares and will represent 22.0 per cent. of the Enlarged Share Capital.
The offer price
NewRiver REIT says that the offer price of 335 pence per New Ordinary Share represents:
- a premium of 14.7 per cent. to the Company’s last reported EPRA net asset value per Ordinary Share of 292 pence as at 31 March 2017; and
- a discount of 2.9 per cent. to 345 pence, being the average closing share price over the 20 trading days up to and including 14 June 2017 (the Business Day prior to announcement of the Capital Raising) adjusted for the Special Dividend and the First Quarterly Dividend.
About NewRiver REIT and its manager, NewRiver
NewRiver REIT is a Real Estate Investment Trust that is focussed on the UK food and value retail sector. It was founded in 2009, and listed on the AIM segment of the London Stock Exchange. On the 18 August 2016 it moved to a premium listing on the Main market of the London Stock Exchange as a plc.
NewRiver REIT is managed by NewRiver. NewRiver describes itself as a leading property investor, asset manager & developer specialising in the UK retail sector. It says that its mission is to, “own and operate best-in-class retail properties that generate a high, sustainable income and provide a vibrant attractive environment for our retailers and shoppers.”
NewRiver says that it is one of the UK’s largest shopping centre owner/managers with assets under management of £1.3 billion, as at 31 March 2017, comprising 33 UK-wide shopping centres, 22 retail warehouses, 15 high street assets and a portfolio of 344 pubs.
NewRiver REIT raises £225m at 335p per share