Newriver REIT to Buy Back Shares from Growthpoint Properties

Strategic Insights -

Newriver REIT PLC announced its intention to buy back up to 47.7 million shares from Growthpoint Properties Ltd, the largest South African primary REIT listed on the Johannesburg Stock Exchange. The London-based real estate investment trust aims to purchase the shares at 75 pence each, which are being sold as part of a larger disposal of 67.4 million shares. This move is seen as an attractive allocation of capital that will be immediately accretive to shareholders, increasing net tangible assets per share by 4% and underlying funds from operations per share by 3% on an annualized basis.

Key Takeaways:

  • Newriver REIT intends to buy back up to 47.7 million shares from Growthpoint Properties Ltd at 75 pence each.
  • The buyback is expected to increase net tangible assets per share by 4% and underlying funds from operations per share by 3% on an annualized basis.
  • The move is seen as an attractive allocation of capital that will be immediately accretive to shareholders.
  • Growthpoint Properties will retain a minimum of 20.7 million shares in Newriver REIT, equivalent to around 5.5% of the firm's total share capital.
  • Panmure Liberum Ltd is acting as sole bookrunner in connection with the placing.
  • The buyback is a way for Newriver REIT to reinvest proceeds from the GBP5.8 million sale of Abbey Centre in Northern Ireland at a material discount to the current net asset value.

Statistics:

  • Up to 47.7 million shares being sold by Growthpoint Properties Ltd.
  • 75 pence per share being offered by Newriver REIT.
  • 4% increase in net tangible assets per share expected as a result of the buyback.
  • 3% increase in underlying funds from operations per share expected as a result of the buyback on an annualized basis.
  • GBP5.8 million sale of Abbey Centre in Northern Ireland by Newriver REIT.
  • 67.4 million shares currently owned by Growthpoint Properties Ltd.

Sources:

  • Alliance News. (2025). Shares in Newriver REIT PLC climbed on Wednesday as it said it intends to snap up a chunk of shares being sold by an investor.