NewRiver REIT (NRR) plans to raise £200m through a firm placing and open offer, and to use around £60m of the proceeds to buy out the other half of its Bravo joint venture. A further £30m will be used on the construction of further convenience stores for the Co-operative and the development of the group’s retail park on Canvey Island.
The new shares will have an offer price of 330-340p, which is a discount to the 360p share price before the announcement, but will not be entitled to receive the 3p special dividend declared for the year ending 31 March 2017 or the first quarterly dividend of 5.25p in respect of the year to March 2018.
The Bravo joint venture comprises a number of NewRiver retail property unit trusts which hold properties including in Middlesbrough, Hastings. In the year ending December 2016, it generated net rental income of £16.5m.
