Growthpoint Properties disposes of entire interest in NewRiver REIT

(Alliance News) - Growthpoint Properties Ltd on Thursday confirmed that it has sold its entire interest in NewRiver REIT PLC, netting GBP50.5 million or around ZAR1.21 billion.

The Johannesburg-based real estate investment trust in December last year received GBP50.7 million in cash and 67.4 million new NewRiver shares after disposing of its 69% stake in Capital & Regional PLC to NewRiver REIT. NewRiver REIT concluded its acquisition of Capital & Regional in December.

Growthpoint said on Thursday it had placed all of its 67.4 million shares in NewRiver REIT at a price of 75 pence per share on Wednesday, raising gross sale proceeds of GBP50.5 million.

NewRiver REIT bought back 47.7 million shares from Growthpoint. The remaining 19.7 million NewRiver shares were placed in the market via an accelerated book build programme.

Growthpoint said it plans to use the cash proceeds from the placement to strengthen its balance sheet and pursue select investment opportunities.

Newriver REIT said on Wednesday it intended to buy back up to 47.7 million shares from Growthpoint at 75p each.

Growthpoint shares ended up 0.2% to ZAR14.77 apiece in Johannesburg on Thursday.

Shares in NewRiver REIT were 1.5% lower at 74.30p each in London.

By Artwell Dlamini, Alliance News senior reporter South Africa

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