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NewRiver REIT To Acquire Remaining 50% Stake In BRAVO JVs For GBP 59.4 Mln Cash

NewRiver REIT plc (NRR.L) announced Thursday that it has now exchanged conditional contracts to acquire the remaining 50% share in its BRAVO Joint Ventures from subsidiaries of BRAVO II for a cash consideration of 59.4 million pounds

With the deal, NewRiver will gain control over 4 convenience-led shopping centre assets in Belfast, Glasgow, Hastings and Middlesbrough with a total gross asset value of 240 million pounds, representing a topped up net initial yield of 7.3%.

The transaction is expected to increase Funds From Operations in the year to March 2018 by 4.2 million pounds, with a 5.4 million pounds increase in net rental income and a 1.2 million increase pounds in net finance costs. The transaction is expected to generate additional annualised accounting net rental income of 8.3 million pounds.

The BRAVO Joint Ventures generated net rental income of approximately 16.5 million pounds for the financial year 2016 and had net assets of approximately 120.8 million pounds, of which the Group's share was approximately 60.4 million pounds.

The JVs have indebtedness of approximately 120 million pounds outstanding which the Company intends to remain in place and bring onto its own balance sheet following completion of the acquisition.

The acquisition is conditional on obtaining funding which the Company intends to be satisfied by means of 59.4 million pounds of the net proceeds of the capital raising announced on June 15.

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