NewRiver Retail, the UK REIT specialising in the UK food and value sector, is to raise £150m for further acquisitions through a share placing.
The company said that £29m would go towards buying the remaining half of the 202 pubs bought from Marston’s in 2013.
The company said the move marked “a significant next step in NewRiver’s progress”, and it expected to have a market capitalisation of £500m upon completion of the placing. It said it intends to move its listing from AIM to the main market.
The company has also said it intends to buy 13 retail parks for c£70m and is currently in heads of terms on the deal.
Chief executive David Lockhart said: “NewRiver has enjoyed significant progress from its foundation in 2009, when it commenced business with just £25 million of seed capital. Since then we have demonstrated a track record of delivering strong returns for shareholders by deploying our highly regarded active asset management and risk-controlled development skills. Support for our strategy has been evidenced by a series of successful equity issues to propel growth.
“Today’s equity fundraising will give us the ability to boost the gross asset value of the business to in excess of £1bn.”
