New River agrees £430m refinance deal

SHOPPING centre owner New River has agreed a refinancing deal worth £430m as it seeks to reduce the cost of its debt.

The company said the new facility meant it had increased flexibility to spend on its portfolio, as well as replacing its existing borrowing arrangements. The money will reduce the company’s cost of debt to below 3pc, from its existing level of 3.5pc.

New River owns retail properties across the UK worth around £1.3bn, including 33 shopping centres and a portfolio of 344 pubs.

Mark Davies, chief financial officer, said the new financial agreement was a “significant milestone for the company”, which was only formed in 2009. New River “remains focused on delivering growing and sustainable cash returns to our shareholders”, he said.

“This refinancing further enhances our already efficient operating platform,” he added.

The syndicate for the new facilities consists of Barclays, HSBC, the Royal Bank of Scotland and Santander.

In June, New River raised £225m through a stock market placing in order to buy a 50pc stake in a portfolio of five shopping centres that the company did not already own, also giving it more money to buy other buildings. The strengthening of the company’s balance sheet indicates that it sees a strong future in regional retail.

Analysts suggested that New River’s combination of careful stock selection and a cautious approach to risk meant it was well placed to continue to trade well.

Shares in the company closed up

1.0pc at 343.5p.