NewRiver REIT has drummed up £120m of available liquidity to bolster itself against the impact of coronavirus on the business.
The landlord has closed its community pub business, Hawthorn Leisure, in line with the government’s strategy to slow the spread of Covid-19.
It improved its financial position at the end of last week, and now has £75m of unrestricted cash balances and £45m of committed undrawn credit facilities, providing £120m of available liquidity.
As a result of government economic interventions to provide assistance to businesses affected by coronavirus, the company and its tenants will save £5m in cash flow over the next 12 months by deferring business rates payments.
In addition, 80% of the wages of employees who can’t work will be paid by the government.
The business is also talking with its insurers to make a claim for the business disruption caused by Covid-19 and for loss of rent.
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