NewRiver offers £147m for Capital & Regional
NewRiver has submitted a formal bid to acquire Capital & Regional, valuing the real estate investment trust at £147m.
The acquisition would create a combined retail portfolio valued at around £900m.
NewRiver is offering 31.25p for each Capital & Regional share, with the latter’s shareholders set to receive an aggregate of 98.5 million NewRiver shares. Capital & Regional’s shareholders would therefore control approximately 21% of NewRiver’s share capital following the acquisition.
This comes as NewRiver raises proceeds of approximately £50.2m via a cash placing and retail offer to help fund the acquisition.
The REIT said the acquisition represents a “unique opportunity to create a significantly enlarged portfolio at an attractive point in the market cycle”.
Capital & Regional’s portfolio currently comprises six community shopping centres predominantly located in London and South East England.
NewRiver first submitted a preliminary expression of interest to Capital & Regional’s majority shareholder, Growthpoint, regarding a full takeover back in May.
Capital & Regional had also attracted the interests of the Johannesburg-based Vukile Property Fund as well as property investment and management company Praxis, however both firms pulled out of the race leaving NewRiver in the driving seat.