NewRiver wins shopping centres

NewRiver Retail has agreed to buy a portfolio of four freehold shopping centres from Zurich Assurance for about £68m in what constitutes a reverse takeover. They are Merlin’s Walk, Carmarthen, The Piazza Shopping Centre, Paisley, The Hildreds Shopping Centre, Skegness and The Horsefair, Wisbech.

NewRiver will fund part of the cost and the continuing growth of the business via a proposed £40m fundraising by placing 16.8m shares at 252p each. David Lockhart, chief executive, said the deal represented an attractive net initial yield of eight percent.

“The acquisition is another transformational transaction for NewRiver, in line with the company’s investment strategy of targeting food anchored and value-led retail centres with stable income profiles and low occupational costs. The transaction will be accretive from the first full financial year following the purchase,” he said.

NewRiver had already identified several “significant” opportunities to apply its active asset management and risk-controlled development skills which would enhance value.