NewRiver secures €281m unsecured debt facility

UK REIT NewRiver has secured a new £240 mln (€281.3 mln) unsecured debt facility, allowing it to return to a fully unsecured debt structure.

The Piazza, Paisley - NewRiver

The facility is split into a £120 mln (€140.6 mln) Term Facility Commitment and a £120 mln (€140.6 mln) Revolving Credit Facility (RCF).

The Term Facility, maturing in April 2030 (with extension options), will refinance an existing secured facility. NewRiver strategically plans to delay drawing on this facility until January 2027 to benefit from the current facility's lower interest rate, saving an estimated £1.4 mln (€1.6 mln). This will result in a fully unsecured balance sheet.

The new RCF is an increase of £20 mln (€23.4 mln) from its predecessor and extends its maturity to April 2031 (with extension options). It also comes with a reduced interest rate.

All four of NewRiver's lenders (Barclays, HSBC, NatWest, and Santander) have increased their commitments, indicating strong confidence in NewRiver's credit rating and asset quality. This new debt structure aims to optimize NewRiver's finances and improve its debt maturity profile.

Will Hobman, CFO, commented: "With the first phase of our refinancing complete, we're now focused on our growth agenda. We have the balance sheet, the platform and the pipeline to continue deploying capital where our origination strengths and operational expertise create value for shareholders. The next stage of our refinancing will focus on our £300 mln (€351.6 mln) unsecured corporate bond, which matures in March 2028. With over £200 mln (€234.4 mln) of cash and available liquidity and an improved maturity profile, we are well placed to manage that process from a position of strength."

After completing its acquisition of Capital & Regional in December 2024, NewRiver now boasts a £0.8 bn (€0.94 bn) portfolio across the UK, spanning 650,321 m². This portfolio includes 24 community shopping centres and 11 retail parks. Furthermore, NewRiver also manages 19 shopping centres and 17 retail parks for Capital Partners, bringing its total AUM to £2.3 bn (€2.7 bn).