NewRiver given another extension to make Capital & Regional bid
NewRiver has been given another extension to declare whether it intends to make an offer for fellow real estate investment trust Capital & Regional.
This comes just days after property investment and management company Praxis announced that it would not be making an offer for Capital & Regional, leaving NewRiver as the sole potential bidder for the REIT, which remains in an offer period.
NewRiver has now been granted another two weeks to allow discussions to continue, with the group being given until 26 September to announce a firm intention whether or not it will make an offer for the entire share capital of Capital & Regional.
Capital & Regional said there can be no certainty that any firm offer will be made, nor as to the terms of any such offer.
NewRiver first submitted a preliminary expression of interest to Capital & Regional’s majority shareholder, Growthpoint, regarding a full takeover back in May.
At the time, Capital & Regional had also received an offer from the Johannesburg-based Vukile Property Fund regarding a possible cash and share offer for its entire issued share capital. However, Vukile pulled out after being unable to reach an agreement with Growthpoint – which controls around 68.1% of Capital & Regional’s share capital – as to the terms and structure of any possible offer.
Capital & Regional is specialist manager of shopping centres in the UK with six centres under management comprising over 520 shop units.