NewRiver announced today that it has reached agreement with Capital & Regional on a recommended cash and share offer. NewRiver will acquire the entire issued, and to be issued, share capital of Capital & Regional (the “Combination”) by means of a scheme of arrangement under Part 26 of the Companies Act. The Combination values Capital & Regional at approximately £147 million.

Growthpoint, as Capital & Regional’s 69% shareholder, has entered into an irrevocable undertaking to support the Combination. Following completion of the Combination, Growthpoint is expected to have a shareholding of approximately 14% in NewRiver.

Growthpoint is the largest South African Real Estate Investment Trust (“REIT”) listed on the Johannesburg Stock Exchange (“JSE”), with an international property portfolio including assets in South Africa, Eastern Europe, Australia, and the UK. These are valued at approximately R178bn (approx. £7.5bn), of which approximately 45% is located offshore.

Speaking about the Combination, Dial Partners Managing Director, Sandor de Jasay, said: “We are delighted to have advised Growthpoint alongside RMB on this complex cross-border mandate to support Growthpoint in delivering value for its shareholders from its strategic majority stake in Capital & Regional.”

Dial Partners acted as joint financial advisor to Growthpoint. The Dial Partners team was led by Raymond McKeeve, Partner, supported by Sandor de Jasay, Managing Director, and Charlie Croxford, Analyst.

RMB acted as joint financial advisor and transaction sponsor to Growthpoint. The RMB team was led by Thabo Ndimande, Corporate Finance Executive, supported by, Daniela Perros and Johan van der Poel, Corporate Finance Transactors.