NewRiver REIT raised £225m in its share issue yesterday, exceeding its £200m target.
The new equity, issued at 335p per share, will be used to fund a £60m acquisition of the 50% share of the Bravo joint venture with Pimco that it does not yet own.
A further £30m will be used for its development pipeline, including the development of the company’s Canvey Island retail park.
The company said it will also look into further off-market purchases with some of the proceeds.
It is one of the biggest property equity raises of the year, after SEGRO’s £561m rights issue in March.
David Lockhart, chief executive of NewRiver REIT, 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.
“NewRiver is very familiar with the Bravo assets, having been responsible for their day-to-day management since the joint venture was established in 2013.
“Given the investment made into the Bravo assets to date, we are confident this acquisition will produce attractive long-term results for our shareholders.”
Liberum and Peel Hunt were joint bookrunners.
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