NewRiver REIT PLC Acquisition of Bravo Inns for £17.9 million (4164V)
03 Diciembre 2019 - 1:00AM
UK Regulatory
TIDMNRR
RNS Number : 4164V
NewRiver REIT PLC
03 December 2019
NewRiver REIT plc
("NewRiver" or the "Company")
Acquisition of Bravo Inns for GBP17.9 million
NewRiver is pleased to announce the acquisition of community pub
company Bravo Inns Limited ("Bravo Inns") for GBP17.9 million,
representing an EBITDA multiple of 6.8x. The transaction is
expected to generate annualised outlet EBITDA of GBP2.6 million,
equating to a yield on cost of 14%, which excludes GBP0.3 million
of synergies expected to be realised through the transfer of Bravo
Inns to the Hawthorn Leisure platform. The transaction will be
accretive to Underlying Funds From Operations and will further
increase dividend cover, which is the Company's key priority.
Bravo Inns owns 44 wet-led community pubs, predominantly located
in North West England. The Bravo Inns management have established a
high-quality, well-managed and well-invested operator managed
portfolio which complements Hawthorn Leisure's existing 660
community pub portfolio.
The acquisition will increase NewRiver's exposure to the highly
profitable operator managed pub model. This will provide the
Company with opportunities to drive higher returns through
accretive capital expenditure and other asset management
initiatives, whilst providing the Company with a higher degree of
management control and oversight.
Mark Davies, Chief Financial Officer of NewRiver and CEO of
Hawthorn Leisure commented: "The UK pub sector has experienced a
recent revival in transaction activity and, as an early investor
into community pubs, we have been tracking the success of Bravo
Inns for some time. The transaction will increase our portfolio
weighting in community pubs and demonstrates the value of our
Hawthorn Leisure platform in identifying acquisitions that can
deliver higher yielding sustainable cashflows with scale driven
synergies. A further attraction of this acquisition is the quality
of the pub estate and the pub partners. We look forward to
welcoming Bravo Inns and its pub partners to Hawthorn Leisure."
For further information
NewRiver REIT plc +44 (0)20 3328 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Tom Loughran (Head of Investor
Relations)
+44 (0)20 7251
Finsbury 3801
Gordon Simpson
James Thompson
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing, developing and
recycling convenience-led, community-focused retail and leisure
assets throughout the UK.
Our GBP1.3 billion portfolio covers 9 million sq ft and
comprises 33 community shopping centres, 25 conveniently located
retail parks and over 700 community pubs. Having hand-picked our
assets since NewRiver was founded in 2009, we have deliberately
focused on the fastest growing and most sustainable sub-sectors of
the UK retail market, with grocery, convenience stores, value
clothing, health & beauty and discounters forming the core of
our retail portfolio. This focus, combined with our affordable
rents and desirable locations, delivers sustainable and growing
returns for our shareholders, while our active approach to asset
management and in-built 2.3 million sq ft development pipeline
provide further opportunities to extract value from our
portfolio.
Hawthorn Leisure is a community pub management company that is
owned by NewRiver.
NewRiver has a Premium Listing on the Main Market of the London
Stock Exchange (ticker: NRR) and is a constituent of the FTSE 250
and EPRA indices. Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31
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END
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