FINANCE: NewRiver Retail has proposed a share placing to raise £75m and buy out the remainder of a 1m sq ft shopping centre portfolio.
The AIM-listed REIT said proceeds would fund a £71m purchase of the remaining 90% of Shopping Centre Joint Venture from LVS Luxembourg IV, a subsidiary of by Pacific Investment Management Company-managed Bravo.
The portfolio comprises five shopping centres and a single high street asset let to a total of 200 tenants.
Since NewRiver’s acquisition of its initial 10% interest in 2012, the assets have performed well.
The acquisition is being made off market at the equivalent to a net initial yield of 7.75% on the purchase price.
David Lockhart, chief executive of NewRiver Retail, said: “We are confident the acquisition will add significant long term value and it is expected to be NAV and EPS enhancing in the current financial year and beyond.”
