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LONDON (Alliance News) - NewRiver Retail Ltd on Monday announced proposals to change the corporate structure of its group of companies by inserting a new English-incorporated parent company at the head of the group, being a company which will retain its tax residency in the UK.
The retail property investor said this new corporate structure would best support its long-term strategy and growth prospects.
NewRiver said its operations are focused exclusively in the UK and the location of its existing holding company in Guernsey "no longer corresponds with the group's tax status and the location of its operations", as it entered the UK REIT regime in 2010 which requires it to retain its tax residency in the UK.
NewRiver also, last month, said it intended to move its listing to the Main Market of the London Stock Exchange and said, after "detailed consideration" had decided to propose a new corporate structure, which will see the name of the company change to NewRiver REIT. The company said this is consistent with its development activities which "extend beyond the foundations of retail only, to leisure, retail warehousing and public houses".
Shareholders will be able to vote on the proposals at an extraordinary general meeting, with the date to be given in a circular to shareholders, NewRiver said.
"We are pleased to propose the creation of a new corporate structure which better reflects our operational base and the location of our assets. Additionally, the change of name to NewRiver REIT PLC is consistent with our core investment and development activities which extend beyond the foundations of retail only, to leisure, retail warehousing and public houses. This is an important step for the company and also reflects our commitment to a strong corporate governance structure," said Non-Executive Chairman Paul Roy.
Shares in NewRiver closed up 2.1% at 289.00 pence on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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