NewRiver REIT Completes £147 Million Acquisition of Capital & Regional, Creating £2.4 Billion Retail Property Portfolio

NewRiver REIT has announced the acquisition of Capital & Regional in a transformative £147 million transaction. This strategic merger establishes a combined property portfolio valued at £2.4 billion in assets under management, reinforcing NewRiver’s position as a leading player in the UK retail real estate market.

The combined portfolio comprises 47 retail assets, including 29 community shopping centres and 13 retail parks across the UK and Northern Ireland. The assets focus on value-oriented and essential retail tenants, ensuring strong, stable rental income and long-term growth potential.

Capital & Regional shareholders will receive 31.25p in cash and 0.41946 NewRiver shares per Capital & Regional share. This values each share at 62.5p, representing a 21% premium to its pre-offer price. Capital & Regional shareholders will hold approximately 21% of the enlarged company, with Growthpoint Properties, its largest shareholder, retaining a 14% stake.

The acquisition brings enhanced scale and diversification, unlocking operational synergies and improving access to acquisition and asset management opportunities. Projected annual cost savings of £6.2 million are expected through streamlined management and shared services. The strengthened position in the retail property sector leverages stabilising property values and improving rental growth prospects.

The combined entity expects an average cost of debt of 3.5%, with no debt maturities until January 2027. This financial stability supports potential earnings accretion and the prospect of higher dividend yields for shareholders.