Statement re Possible Offer for Capital & Regional

Capital & Regional plc

18 September 2024

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE AND THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE NOR AS TO THE TERMS ON WHICH ANY FIRM OFFER MIGHT BE MADE

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS, PROSPECTUS EQUIVALENT DOCUMENT OR SCHEME DOCUMENT

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

18 September 2024

POSSIBLE CASH AND SHARE OFFER

by

NEWRIVER REIT PLC

for

CAPITAL & REGIONAL PLC

proposed to be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006

1.           INTRODUCTION

Further to the announcement made by NewRiver REIT plc ("NewRiver") on 23 May 2024 in relation to a possible offer by NewRiver for Capital & Regional plc ("Capital & Regional"), the boards of NewRiver and Capital & Regional are pleased to announce the principal terms and conditions of a possible cash and share offer for Capital & Regional pursuant to which NewRiver would propose to acquire the entire issued and to be issued share capital of Capital & Regional (the "Possible Offer").

2.           THE POSSIBLE OFFER

Under the terms of the Possible Offer (the "Possible Offer Terms"), Capital & Regional Shareholders would be entitled to receive:

for each Capital & Regional Share

·              31.25 pence in cash; and ·               0.41946 New NewRiver Shares

On the basis of the Closing Price per NewRiver Share of 74.5 pence on 22 May 2024 (being the last Business Day before the Offer Period commenced (the "Offer Period Last Practicable Date")), the Possible Offer Terms imply a value of 62.5 pence per Capital & Regional Share and approximately £147 million for the entire issued, and to be issued, ordinary share capital of Capital & Regional, which represents a premium of approximately:

·           21 per cent. to the undisturbed Closing Price of a Capital & Regional Share of 51.5 pence on the Offer Period Last Practicable Date;

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CODE AND DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE NOR AS TO THE TERMS ON WHICH ANY FIRM OFFER MIGHT BE MADE

·           21 per cent. to the three-month VWAP of 51.7 pence per Capital & Regional Share on the Offer Period Last Practicable Date; and

·            18 per cent. to the six-month VWAP of 53.0 pence per Capital & Regional Share on the Offer Period Last Practicable Date.

Under the Possible Offer Terms, Capital & Regional Shareholders would, in aggregate, receive approximately 98,527,475 New NewRiver Shares and, immediately following completion of the Combination, would own approximately 21 per cent. of the issued ordinary share capital of NewRiver (based on the existing issued ordinary share capital of NewRiver and the issued and to be issued ordinary share capital of Capital & Regional as at 17 September 2024, being the last Business Day prior to the date of this announcement (the "Last Practicable Date")).

In addition, pursuant to the Possible Offer Terms:

·           Capital & Regional Shareholders would be entitled to receive and retain an interim dividend declared by Capital & Regional in respect of the six month period to 30 June 2024, which is expected to be paid to entitled Capital & Regional Shareholders on 27 September 2024, with such dividend not to exceed an amount of 2.85 pence per Capital & Regional Share (the "Capital & Regional Interim Dividend");

·     Capital & Regional Shareholders would, once they have become NewRiver Shareholders following completion of the Combination, be entitled to receive an interim dividend to be declared by NewRiver in respect of the six month period to 30 September 2024, which is expected to be declared in November 2024 and paid to NewRiver Shareholders on the register of members of NewRiver on a record date to be set after the expected record time for the Scheme to effect any Combination (the "Scheme Record Time"), with such interim dividend to be in an amount of not less than 3.0 pence per NewRiver Share (the "NewRiver Interim Dividend"). Therefore, Scheme Shareholders who retain their New NewRiver Shares following completion of any Combination, and at the record date to be set for the NewRiver Interim Dividend (assuming such record date falls after the expected Scheme Record Time), would receive the NewRiver Interim Dividend; and

·           if the record date for the NewRiver Interim Dividend is a date prior to the Scheme Record Time, Capital & Regional would declare and pay, prior to the Scheme Record Time, a further interim dividend of 1.3 pence per Capital & Regional Share which Capital & Regional Shareholders would be entitled to receive and retain (the "Capital & Regional Additional Dividend").

If, on or after the date of this announcement and on or prior to the date on which any Combination becomes effective, Capital & Regional announces, declares, makes or pays:

·     any dividend, distribution or form of capital return in excess of the Capital & Regional Interim Dividend;

·     in the event that the record date for the NewRiver Interim Dividend is a date prior to the Scheme Record Time, any dividend, distribution or form of capital return in excess of any Capital & Regional Additional Dividend; and/or

·      any other dividend, distribution or form of capital return,

(each a "Capital & Regional Additional Distribution"), Capital & Regional Shareholders would be entitled to receive and retain such Capital & Regional Additional Distribution but NewRiver would be entitled to reduce the consideration payable pursuant to the Possible Offer Terms by an amount equivalent to all or any part of such Capital & Regional Additional Distribution.

It is proposed that the cash consideration payable by NewRiver pursuant to the Possible Offer Terms would be funded from NewRiver's existing cash resources and the net proceeds of the Placing. The cash consideration payable pursuant to the Possible Offer Terms would be priced in pounds sterling but Capital & Regional Shareholders on Capital & Regional's South African Register would, as is required as a consequence of Capital & Regional's secondary listing on the JSE, receive any cash consideration due to them under the Possible Offer Terms (as well as any Capital & Regional Additional Dividend) in South African Rand. The Scheme Document would include further details in relation to these currency exchanges. Further details in respect of the proposed treatment of Capital & Regional Shareholders who hold their Capital & Regional Shares on Capital & Regional's South African Register would also be set out in the Scheme Document.

Any firm offer, if made, would constitute a "significant transaction" for NewRiver for the purposes of the UK Listing Rules.

The announcement of any firm intention to make an offer for Capital & Regional by NewRiver under Rule 2.7 of the Code is subject to the satisfaction or waiver of a number of customary pre-conditions, including, amongst other things, finalisation of binding transaction documentation and the Placing, waivable at NewRiver's discretion. There can be no certainty that any firm offer will be made, even if the pre-conditions are satisfied or waived. A further announcement will be made in due course.

For the purposes of Rule 2.5(a) of the Code, NewRiver reserves the right to make a firm offer for Capital & Regional on less favourable terms than the Possible Offer Terms:

·            with the agreement or recommendation of the Capital & Regional Board; or

·            if a third party announces (after the date of this announcement) a firm intention to make an offer under Rule 2.7 of the Code or a possible offer under Rule 2.4 of the Code for Capital & Regional which, at that date, is of a value less than the value implied by the Possible Offer Terms; or

·             following the announcement of a whitewash transaction pursuant to the Code.

In addition, NewRiver reserves the right to introduce other forms of consideration and/or vary the mix or composition of consideration of any firm offer, if made.

In accordance with Rule 2.6(a) of the Code, NewRiver is required, by not later than 5.00 p.m. (UK time) / 6.00 p.m. (SA time) on 26 September 2024, either to announce a firm intention to make an offer for Capital & Regional in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for Capital & Regional, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

In accordance with Rule 2.6(c) of the Code, the above deadline may be extended further at the request of the Capital & Regional Board and with the consent of the Panel.

In accordance with Rule 2.6(d), this deadline will cease to apply if any third party has announced a firm intention to make an offer for Capital & Regional.

There can be no certainty that any firm offer will be made for Capital & Regional, nor as to the terms on which any offer, if made, will be made.

Any firm offer, if made, would be subject to the approval of Capital & Regional Shareholders and NewRiver Shareholders would also be required to approve certain resolutions connected with the allotment and issue of the New NewRiver Shares to Capital & Regional Shareholders pursuant to the Possible Offer Terms at a general meeting of NewRiver Shareholders.

3.           RATIONALE FOR THE POSSIBLE OFFER

NewRiver is a leading real estate investment trust specialising in buying, managing and developing retail assets throughout the UK. Its community shopping centres and conveniently located retail parks are occupied by tenants predominantly focused on providing essential goods and services. Alongside its balance sheet assets, and in order to leverage its high-quality retail asset management platform, NewRiver also has a Capital Partnership business, which generates recurring fee income by providing asset management services to a high quality roster of institutional, private equity and public sector partners. NewRiver's objective is to own and manage the most resilient retail portfolio in the UK, focused on core shopping centres, retail parks, and regeneration opportunities in order to deliver long term attractive recurring income returns and capital growth for its shareholders.

Capital & Regional is a UK-focused retail property REIT specialising in shopping centres serving the non-discretionary and value-orientated needs of their local communities. It has a track record of delivering value enhancing retail and leisure asset management opportunities across a portfolio of tailored in-town community shopping centres. Capital & Regional is listed on the Main Market of the London Stock Exchange and has a secondary listing on the Main Board of the Johannesburg Stock Exchange, with gross assets of £350 million at 30 June 2024 (based on the property valuation report on Capital & Regional's portfolio prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement) and a market capitalisation of approximately £144 million as at the Last Practicable Date.

The NewRiver Board believes that there is a strong strategic, operational and financial rationale for the Combination and that the Combined Group would benefit from enhanced scale, material cost savings, mid- to high-teens accretion to UFFO per share, better access to acquisition and asset management opportunities, improved debt optionality, expected cost of capital benefits and the potential for increased share liquidity.

Following a challenging period for the UK retail real estate sector, in which capital values have materially rebased, with the MSCI UK Shopping Centres Index declining by 53 per cent. between June 2019 and June 2024, the NewRiver Board believes the Combination represents a unique opportunity to create a significantly enlarged portfolio at an attractive point in the market cycle.

In particular, the NewRiver Board believes that the Combination would have the following benefits for the Combined Group:

·          Combination of high-quality, complementary assets - Capital & Regional's portfolio comprises six community shopping centres predominantly located in London and South East England and principally let to low-risk, essential and value-oriented retailers that are highly complementary to NewRiver's existing portfolio. Both portfolios comprise retail assets that are well-located to satisfy convenience-led shopping by an attractive customer base, with over 70 per cent. of shoppers in both NewRiver's and Capital & Regional's assets travelling less than five miles and over 55 per cent. of shoppers having above average post-tax net incomes. NewRiver believes that the disposal of non-core assets in recent years and the acquisition of The Gyle in Edinburgh in September 2023 have enhanced the quality and complementary nature of Capital & Regional's remaining portfolio;

·               Creation of a c. £0.9 billion retail portfolio - the Combined Group would have a portfolio focused on community shopping centres and retail parks, generating annualised rent of approximately £90 million, valued in aggregate at c. £889 million (based on the property valuation reports for NewRiver prepared by Knight Frank and Colliers, as set out in Parts A and B of Appendix 2 to this announcement and the property valuation report on Capital & Regional's portfolio prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement) (comprising 47 assets) and with assets under management of c. £2.4 billion (comprising 84 assets);

·            Low-risk tenant profile with an attractive income profile and opportunities to add value - the Combined Group's portfolio would benefit from complementary low-risk tenant bases with low levels of tenant concentration. Approximately 87 per cent. of Capital & Regional's retail tenant base by rent is comprised of retail tenants focused on value and essential goods and services, comparable to approximately 80 per cent. of NewRiver's retail tenant base. The Combined Group's portfolio risk profile would be aligned with UK retail and industrial sector averages, by reference to the projected cumulative tenant probability of failure, with the benefit of a material yield premium and with an equivalent yield of approximately 8.5 per cent. compared to the UK retail and industrial sector averages of 6.8 per cent. and 6.1 per cent., respectively. With an affordable occupational cost ratio of c. 8.8 per cent. and strong in-store sales growth, the combined portfolio would be well-positioned for future rental growth, supported by ongoing asset management opportunities within Capital & Regional's portfolio, such as increasing occupancy and improving gross-to-net ratios;

·            Material cost savings and significant earnings accretion - the Combination would be expected to unlock approximately £6.2 million of net pre-tax run-rate recurring annual cost synergies, the majority of which would be expected to be effective shortly following completion of the Combination with the full benefit of the synergies from the Combination expected to be unlocked within 12 months of completion of the Combination on an annualised basis. These cost savings would be expected to arise from the removal of duplicative functions and the rationalisation of listing and other administrative and operational expenses, as outlined in the Quantified Financial Benefits Statement set out in this announcement. The Combination would be expected to generate a strong income return and mid- to high-teens accretion to UFFO per share, enhancing the Combined Group's ability to pay a materially higher, covered dividend;

·               Balance sheet strength maintained and debt maturity profile diversified - the Combined Group would seek to preserve a robust and conservatively leveraged balance sheet in line with NewRiver's existing LTV guidance. On completion of the Combination, the Combined Group would benefit from a weighted average cost of 3.5 per cent. across drawn debt of £444 million with no maturity on drawn debt until January 2027 as well as continuing to benefit from substantial available liquidity, improved debt optionality and expected cost of capital benefits resulting from the increased scale of the Combined Group; and

·           Increased share liquidity with expanded shareholder base - the Combination would create an enlarged REIT with enhanced equity market profile and a broader shareholder base, with shareholders benefitting from the potential for increased share liquidity and larger weightings in key indices.

Portfolio valuations

NewRiver and its advisers have carried out extensive due diligence on Capital & Regional's real estate portfolio and operations. This has included, but is not limited to, a detailed review of corporate, real estate and other information provided by Capital & Regional, site visits, sessions with Capital & Regional's senior management, rigorous internal valuation work and the commissioning of Knight Frank, which values the majority of NewRiver's existing portfolio, to conduct an external valuation of the Capital & Regional portfolio in accordance with the latest version of the RICS Valuation - Global Standards (the "Red Book"). Knight Frank's external valuation report on Capital & Regional's portfolio, which is unqualified and has been prepared in accordance with the requirements of Rule 29 of the Code by a valuer who has had access to sufficient information to prepare such report, is disclosed in Part C of Appendix 2 to this announcement.

In particular, the NewRiver Board has focused on understanding the impact of any Combination and, in particular, the potential acquisition of Capital & Regional's property portfolio, on the Combined Group's balance sheet and related financial metrics. Taking into account the Knight Frank valuation, the NewRiver Board has determined that a valuation for NewRiver's financial reporting purposes would be £350 million. The NewRiver Board recognises that this is different to the Red Book valuation provided by CBRE, as set out in Part D of Appendix 2 to this announcement. It is recognised that real estate valuations, and the assumptions underlying them, are in some cases subjective and that differences of opinion can and do occur between valuers. NewRiver does not contest the factual accuracy of CBRE's and Knight Frank's valuations or the reasonableness of the assumptions adopted by either valuer.

However, given that, in the event that a transaction were to be concluded, it would be the intention that Knight Frank would conduct independent valuations of the Capital & Regional assets on behalf of NewRiver for future financial reporting purposes, the NewRiver Board believes it appropriate to incorporate the Knight Frank valuation when analysing the Combined Group's balance sheet and related financial metrics.

4.           QUANTIFIED FINANCIAL BENEFITS STATEMENT

The NewRiver Directors, having undertaken a review and analysis of the potential cost savings of the Combined Group, as well as taking into account factors they can influence, believe the Combined Group could deliver shareholder value through the expected realisation of approximately £7.3 million of gross pre-tax run-rate recurring annual cost synergies. These would be expected to be realised primarily from consolidation of:

·           board, senior management, central and support functions and savings related to Capital & Regional's status as a publicly traded company (which would no longer be required on a standalone basis), together with third party support, including professional advisory fees, which would be expected to contribute approximately 85 per cent. (approximately £6.2 million) of the gross pre-tax run-rate recurring annual cost synergies; and

·          head office and other operating infrastructure such as technology and IT, which would be expected to contribute approximately 15 per cent. (approximately £1.1 million) of the gross pre-tax run-rate recurring annual cost synergies.

Potential areas of dis-synergy have been considered by the NewRiver Directors, with the principal area of dis-synergy being income generated from property management services (equating to approximately £1.1 million per annum), which is assumed to cease on completion of any Combination because Capital & Regional provides these services to tenants but NewRiver would intend to align this approach with its existing portfolio whereby these services are provided by a third party specialist. Potential cost savings associated with the outsourcing of these services have been reflected in the expected recurring cost synergy figure.

Accordingly, the NewRiver Directors believe that the Combined Group could deliver approximately £6.2 million of net pre-tax run-rate recurring annual cost synergies.

The majority of the above cost synergies would be expected to be effective shortly following completion of the Combination and it is expected that the full benefit of the synergies would be unlocked within 12 months of completion of the Combination on an annualised basis.

The identified cost savings would be contingent on the completion of the Combination and would not be achieved by either NewRiver or Capital & Regional independently. The estimated cost synergies referred to above reflect both the beneficial elements and the relevant costs.

The NewRiver Directors have considered one-off costs in connection with realising the expected cost synergies and estimated these to be approximately £2.9 million, which would predominantly be incurred in the first 12 months following completion. For the avoidance of doubt, this approximate £2.9 million is not factored into the £6.2 million of net pre-tax run-rate recurring annual cost synergies referred to above.

These statements of estimated cost savings and synergies relate to future actions or circumstances which, by their nature, involve risks, uncertainties and contingencies. As a consequence, in the event that any firm offer were to be made and any Combination effected, the identified synergies and estimated savings referred to may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. For the purposes of Rule 28 of the Code, the statements of estimated cost savings and synergies contained in this announcement are solely the responsibility of NewRiver and the NewRiver Directors. Any statement of intention, belief or expectation for the Combined Group following any Combination becoming effective is also an intention, belief or expectation of the NewRiver Directors and not of the Capital & Regional Directors.

These statements are not intended as a profit forecast and should not be interpreted as such. No part of these statements, or this announcement generally, should be construed or interpreted to mean that the Combined Group's earnings in the first year following any Combination becoming effective, or in any subsequent period, would necessarily match or be greater than or be less than those of NewRiver and/or Capital & Regional for the relevant preceding financial period or any other period.

Appendix 3 to this announcement includes a copy of these statements of anticipated cost savings and synergies arising from a Combination and provides underlying information and bases of belief and calculation.

Appendix 3 to this announcement also includes reports from NewRiver's reporting accountant, BDO, and its lead financial adviser, Jefferies, in connection with the anticipated Quantified Financial Benefits Statement, as required pursuant to Rule 28.1(a) of the Code, and provides underlying information and bases of belief. Jefferies, as lead financial adviser to NewRiver, has provided such report for the purposes of the Code stating that, in its opinion and subject to the terms of its report, the Quantified Financial Benefits Statement, for which the NewRiver Directors are responsible, has been prepared with due care and consideration.

Further information on the bases of belief supporting the Quantified Financial Benefits Statement, including the principal assumptions and sources of information, is set out in Appendix 3 to this announcement.

Each of BDO and Jefferies has given and not withdrawn its consent to the inclusion of its report on the Quantified Financial Benefits Statement in Parts B and C, respectively, of Appendix 3 to this announcement.

5.           THE INDEPENDENT CAPITAL & REGIONAL DIRECTORS' VIEWS ON THE POSSIBLE OFFER

Norbert Sasse and Panico Theocharides, non-executive directors of Capital & Regional, are Growthpoint's nominated representatives on the Capital & Regional Board. As noted below, Growthpoint, in its capacity as Capital & Regional's largest shareholder, would be fully supportive of a firm offer made for Capital & Regional by NewRiver in line with the Possible Offer Terms, if made, and, accordingly, has irrevocably undertaken to vote, or procure the vote, in favour of the Scheme at the Court Meeting and of the Capital & Regional Resolution(s) to be proposed at the Capital & Regional General Meeting (or, in the event that any Combination would be implemented by way of a Takeover Offer, to accept, or procure the acceptance of, such Takeover Offer). As a result of this, and of Growthpoint's interest in Capital & Regional, Norbert Sasse and Panico Theocharides have not participated in the Capital & Regional Directors' deliberations in relation to the proposal put to them in relation to the Possible Offer by NewRiver.

The Independent Capital & Regional Directors believe that a Combination would bring together two high-quality, complementary portfolios of community-focused shopping centres and retail parks capable of achieving significant strategic, operational and financial benefits as follows:

·        by establishing a c. £0.9 billion (based on the property valuation reports for NewRiver prepared by Knight Frank and Colliers, as set out in Parts A and B of Appendix 2 to this announcement and the property valuation report on Capital & Regional's portfolio prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement) retail portfolio of 29 shopping centres, and 13 retail parks, with Capital & Regional Shareholders benefiting from increased geographic and tenant diversification from the NewRiver portfolio;

·       providing Capital & Regional Shareholders with exposure to retail parks, where vacancy rates and rental growth are being driven by robust occupational demand;

·          providing Capital & Regional Shareholders with significantly enhanced scale which should have the following benefits:

o   improved share liquidity, with a significantly improved free float and diversified shareholder base;

o     access to cheaper and more flexible sources of capital through an enlarged security pool and greater income diversification; and

o      larger weightings in key indices;

·          providing material cost synergies of approximately £6.2 million on a net pre-tax run-rate recurring annual cost basis, the majority of which would be expected to be effective shortly following completion of any Combination; and

·             giving Capital & Regional Shareholders the opportunity to share in the upside from the Combined Group, with Capital & Regional Shareholders holding, in aggregate, approximately 21 per cent. of the issued share capital of NewRiver immediately following completion of the Combination. Capital & Regional Shareholders would also benefit from partial liquidity from the cash component of any firm offer, if made. On the basis of the Closing Price per NewRiver Share of 74.5 pence on the Offer Period Last Practicable Date, the implied value of 62.5 pence per Capital & Regional Share under the Possible Offer Terms represents an attractive premium of approximately:

o     21 per cent. to the undisturbed Closing Price of a Capital & Regional Share of 51.5 pence on the Offer Period Last Practicable Date;

o     21 per cent. to the three-month VWAP of 51.7 pence per Capital & Regional Share on the Offer Period Last Practicable Date; and

o    18 per cent. to the six-month VWAP of 53.0 pence per Capital & Regional Share on the Offer Period Last Practicable Date.

In addition, under the Possible Offer Terms, Capital & Regional Shareholders would also be entitled to receive and retain (i) the Capital & Regional Interim Dividend of 2.85 pence per Capital & Regional Share for the six months ended 30 June 2024 which is expected to be paid on 27 September 2024 as well as (ii) the NewRiver Interim Dividend (in the event that the record date for the NewRiver Interim Dividend is a date falling after the expected Scheme Record Time). If the record date for the NewRiver Interim Dividend is a date prior to the Scheme Record Time, Capital & Regional would declare and pay, prior to the Scheme Record Time, the Capital & Regional Additional Dividend which is economically equivalent to the NewRiver Interim Dividend, and Capital & Regional Shareholders would be entitled to receive and retain such Capital & Regional Additional Dividend. The NewRiver Interim Dividend or the Capital & Regional Additional Dividend (as the case may be) would therefore represent an additional 1.3 pence per Capital & Regional Share of value uplift for Capital & Regional Shareholders as a result of any Combination.

The Independent Capital & Regional Directors believe that Capital & Regional has a proven strategy, high quality assets, a highly regarded internalised management team and strong prospects. While the Independent Capital & Regional Directors consider that Capital & Regional can execute its strategy on a standalone basis, the Independent Capital & Regional Directors accept that the business continues to be impacted by scale and liquidity challenges and that developments in the UK REIT sector are typically favouring larger REITs with greater liquidity, lower costs and better availability of capital.

Growthpoint has recently indicated to the Independent Capital & Regional Directors that it has undertaken a detailed, group-wide strategic and capital allocation review with the aim of simplifying its business, identifying assets that are deemed to be non-core and directing its focus to its core assets. Whilst Growthpoint maintains its belief that Capital & Regional is an attractive platform with a high quality portfolio of assets and strong prospects, Capital & Regional has been identified by Growthpoint as a non-core asset. The Independent Capital & Regional Directors note that this change in Growthpoint's position has an impact on Capital & Regional's prospects. Further to this change in Growthpoint's position, Growthpoint and Capital & Regional received certain unsolicited expressions of interest in exploring a possible offer for Capital & Regional. As at the date of this announcement, NewRiver is the only interested party to have presented a comprehensive proposal to the Independent Capital & Regional Directors and completed due diligence. Growthpoint has advised the Independent Capital & Regional Directors that it believes a Combination would represent an attractive opportunity to realise value for its investment in Capital & Regional. Given that Growthpoint has agreed to support a firm offer made by NewRiver in line with the Possible Offer Terms, if made, by way of an irrevocable undertaking over its c. 69 per cent. shareholding, the Independent Capital & Regional Directors believe that a firm offer, if made by NewRiver, would be highly likely to succeed.

As there would be a share consideration component to any Combination under the Possible Offer Terms, which would result in Capital & Regional Shareholders holding NewRiver Shares representing 21 per cent. of the enlarged issued share capital of NewRiver following completion of any firm offer, if made, the Independent Capital & Regional Directors and their advisers have conducted due diligence on NewRiver. This diligence included a review of corporate and legal matters and the use of external independent real estate valuers and advisers to review NewRiver's portfolio of assets. This analysis was not, however, conducted in accordance with the latest version of the Red Book. The Independent Capital & Regional Directors carefully considered the output from the reverse due diligence in coming to their conclusions on the Possible Offer Terms.

The Independent Capital & Regional Directors have taken all of the above factors into consideration when assessing the value and deliverability of any firm offer, if made by NewRiver, and have concluded that the significant strategic, operational and financial benefits of a potential Combination would be superior to the medium-term standalone prospects of the Capital & Regional business.

In addition to their consideration of the Possible Offer Terms, in their evaluation of NewRiver as a suitable owner of Capital & Regional from the perspective of all stakeholders, the Capital & Regional Directors have taken into account NewRiver's intentions for the business in the event that it were to make a firm offer for Capital & Regional. The Capital & Regional Directors note that NewRiver has confirmed that the existing contractual and statutory employment rights, including in relation to pensions, of all Capital & Regional's management and employees would be fully safeguarded in accordance with applicable law in the event that NewRiver was to make a firm offer for Capital & Regional.

Accordingly, following careful consideration of the above factors, including the intentions of Growthpoint, the Independent Capital & Regional Directors would be prepared to recommend unanimously to Capital & Regional Shareholders a firm offer to be made by NewRiver to acquire the entire issued, and to be issued, share capital of Capital & Regional in the event that NewRiver was to make such a firm offer on the Possible Offer Terms and otherwise on the terms and subject to the conditions set out in this announcement and in the Rule 2.7 Announcement (as defined below).

Capital & Regional Board's views on valuation of Capital & Regional portfolio

The Board of Capital & Regional notes the difference between the valuation carried out by CBRE as at 30 June 2024 of £375 million and that commissioned by NewRiver's Board by Knight Frank of £350 million.

The Board of Capital & Regional supports the CBRE valuation of the Capital & Regional portfolio but acknowledges that real estate valuation by its nature is subjective and it is not unusual for independent and highly regarded valuation firms to use differing sets of assumptions and opinions to arrive at estimated market value.

6.           SHAREHOLDER SUPPORT FOR THE POSSIBLE OFFER

Capital & Regional's largest shareholder, Growthpoint Properties Limited ("Growthpoint"), would be fully supportive of a firm offer made in line with the Possible Offer Terms, if made, and, accordingly, has irrevocably undertaken to vote, or procure the vote, in favour of the Scheme at the Court Meeting and of the Capital & Regional Resolution(s) to be proposed at the Capital & Regional General Meeting (or, in the event that any Combination would be implemented by way of a Takeover Offer, to accept, or procure the acceptance of, such Takeover Offer), in respect of 160,648,081 Capital & Regional Shares, in aggregate, representing approximately 69 per cent. of the issued ordinary share capital of Capital & Regional on the Last Practicable Date. Following completion of any Combination, Growthpoint would be expected to hold NewRiver Shares equivalent to approximately 14 per cent. of the enlarged issued ordinary share capital of NewRiver (based on the existing issued ordinary share capital of NewRiver and the issued and to be issued ordinary share capital of Capital & Regional as at the Last Practicable Date).

The obligations of Growthpoint under its irrevocable undertaking shall lapse and cease to have effect on and from the following occurrences:

·           a firm intention to make an offer announcement under Rule 2.7 of the Code is not released by 5.00 p.m. (UK time) on 2 October 2024 (or such later time or date as Capital & Regional and NewRiver may agree);

·       NewRiver announces, with the consent of the Panel, that it does not intend to proceed with the Combination and no new, revised or replacement Scheme or Takeover Offer (as applicable) is announced by NewRiver in accordance with Rule 2.7 of the Code at the same time;

·          the Combination does not become effective, is withdrawn or lapses in accordance with its terms, unless:

o   the Combination is withdrawn or lapses solely as a result of NewRiver exercising its right to implement the Combination by way of a Takeover Offer rather than a Scheme or vice versa; or

o     if the lapse or withdrawal either is not confirmed by NewRiver or is followed within 10 Business Days by an announcement under Rule 2.7 of the Code by NewRiver (or a person acting in concert with it) to implement the Combination either by a new, revised or replacement Scheme or Takeover Offer;

o    any competing offer for Capital & Regional is made which becomes, or is declared, unconditional or otherwise becomes effective; or

o    an announcement is made in accordance with Rule 2.7 of the Code of a competing offer (whether by means of a takeover offer within the meaning of section 974 of the Companies Act 2006 or by way of a scheme of arrangement under section 895 of the Companies Act 2006) for the ordinary shares in Capital & Regional, the value of the consideration per Capital & Regional Share available under which at the time it is made exceeds 68.75 pence per Capital & Regional Share and NewRiver does not match that competing offer with a revised offer that is at least equivalent to the value of such competing offer (in the reasonable opinion of the Capital & Regional Board, having taken advice from its financial adviser(s)) within 10 days of such competing offer being made.

Growthpoint has also undertaken not to sell any New NewRiver Shares which may be issued to it under the Possible Offer Terms (i) for a period of five months following any Combination becoming effective without the prior written consent of NewRiver and other than through NewRiver's financial adviser; and (ii) for a further period of four months thereafter, without first giving NewRiver reasonable written notice of any such sale, in both cases subject to certain customary exceptions.

7.           INFORMATION ON NEWRIVER

NewRiver is an established UK real estate investor, asset manager and developer which is listed on the Equity Shares (Commercial Companies) category of the Official List of the FCA, has its ordinary shares admitted to trading on the Main Market of the London Stock Exchange (ticker: NRR) and is a constituent member of the FTSE All-Share and the FTSE EPRA Indices.

NewRiver's community shopping centres and conveniently located retail parks are occupied by tenants predominantly focused on providing essential goods and services. Alongside its balance sheet assets, and in order to leverage its high-quality retail asset management platform, NewRiver also has a Capital Partnership business, which generates recurring fee income by providing asset management services to a high quality roster of institutional, private equity and public sector partners. NewRiver's objective is to own and manage the most resilient retail portfolio in the UK, focused on core shopping centres, retail parks, and regeneration opportunities in order to deliver long term attractive recurring income returns and capital growth for its shareholders. NewRiver is one of the largest owners and managers of retail real estate assets in the UK with gross assets of approximately £539 million as at 30 June 2024 and a market capitalisation of approximately £252 million as at the Last Practicable Date.

The NewRiver Group's purpose and strategy is to deliver a reliable and recurring income led 10 per cent. total accounting return by leveraging its significant knowledge and experience of the consumer, retail and capital markets and is underpinned by its business model:

•        Disciplined capital allocation - NewRiver assesses the long-term resilience of its assets, with capital allocation decisions made by comparing risk-adjusted returns on its assets to those available from other uses of capital. Capital allocation options include investing into its existing portfolio, acquiring assets in the direct real estate market and share buybacks. Assets can be acquired either on its balance sheet or in capital partnerships.

•       Leveraging its platform - NewRiver leverages its market leading platform to enhance and protect income returns through active asset management across its assets and on behalf of its capital partnerships. The latter also provide enhanced returns through asset management fee income and the opportunity to receive promote fees.

•     Flexible balance sheet - NewRiver's operating platform is underpinned by a conservative, unsecured balance sheet. NewRiver is focused on maintaining its prudent covenant headroom position and has access to significant cash reserves which provide it with the flexibility to pursue opportunities which support its strategy for growth.

The NewRiver Group owns and/or manages a portfolio of approximately £2.0 billion, of which approximately 74 per cent. is owned by its capital partners, and collects almost £190 million per annum of rent from over 3,000 tenants across 43 shopping centres and 30 retail parks (including Ellandi) (as at 30 June 2024).

The NewRiver Group's portfolio totals approximately 5.9 million sq. ft. and an occupancy rate of approximately 97 per cent. (as at 30 June 2024).

8.           INFORMATION ON CAPITAL & REGIONAL

Capital & Regional is a UK-focused retail property REIT specialising in community shopping centres listed on the Equity Shares (Commercial Companies) category of the Official List of the FCA. Its ordinary shares are admitted to trading on the Main Market of the London Stock Exchange (ticker: CAL) and it is a constituent member of the FTSE All-Share and the FTSE EPRA Indices. Capital & Regional also has a secondary listing on the Main Board of the Johannesburg Stock Exchange (ticker: CRP).

Capital & Regional has demonstrated a track record of delivering value-enhancing retail and leisure asset management opportunities across its portfolio of tailored and centrally located community shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green. Capital & Regional also owns and manages the UK's largest indoor ski slope operator, Snozone, which has centres in Milton Keynes, Yorkshire and Madrid (Spain), delivering £8.3 million of revenue for the six months ended 30 June 2024. Capital & Regional focuses on shopping centres providing a strong retail offering consisting of services and non-discretionary retail in locations with strong transport links. Since the launch of Capital & Regional's community shopping centre strategy in 2017, Capital & Regional has seen a change in merchandising mix with 'Value Fashion' (24.0 per cent.), Health and Beauty (18.9 per cent.) and 'Food & Grocery' (18.2 per cent.) presently representing the largest segments across its portfolio. Capital & Regional had gross assets of £350 million as at 30 June 2024 (based on the property valuation report on Capital & Regional's portfolio prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement) and a market capitalisation of approximately £144 million as at the Last Practicable Date.

Capital & Regional's aim of driving sustainable growth, ultimately leading to sustained shareholder returns through dividend payments, is the product of its long-term strategy to:

•       define and own the community shopping centre category in the UK, guided by consumer insight and consistent with global best practice;

•          hold assets that sit at the heart of local communities, typically located adjacent to local transport hubs enabling easy access via public transport as well as available car parking;

•          focus around repositioning and re-purposing spaces to incorporate new stores and uses that reflect the demands of the communities they serve; and

•          ensure that Capital & Regional shopping centres provide the right offering to drive footfall and dwell time, boosting retailer sales and thus increasing demand, improving rental income, property values and consequently revenue and shareholder returns.

The Capital & Regional Group owns a portfolio of approximately £350 million (based on the property valuation report on Capital & Regional's portfolio prepared by Knight Frank, as set out in Part C of Appendix 3 to this announcement) and collected £38.2 million of rent from over 399 occupiers across six shopping centres for the six months ended 30 June 2024.

The Capital & Regional portfolio totals over 2.5 million sq. ft. of lettable space with 632 lettable units and an occupancy rate of 94 per cent. (as at 30 June 2024).

9.           CERTAIN RISKS ASSOCIATED WITH A FIRM OFFER

There would be certain risks associated with any firm offer, if made. These are summarised below:

Any firm offer, if made, would be subject to certain conditions which may not be satisfied or waived

Completion of any firm offer, if made, would be subject to certain conditions (including, but not limited to, those referred to at paragraph 13 below) (the "Conditions") being satisfied (or, if permitted, waived).

There is no guarantee that the Conditions would be satisfied in the necessary time frame (or waived, if applicable) and any firm offer, if made, could, therefore, be delayed or not complete. Delay in completing any firm offer would prolong the period of uncertainty for the NewRiver Group and the Capital & Regional Group and both delay and failure to complete could result in the accrual of additional costs to their businesses without any of the potential benefits of any Combination having been achieved.

Therefore, the aggregate consequences of a material delay in completing, or failure to complete, any firm offer, if made, could have a material adverse effect on the business, results of operations and financial condition of the NewRiver Group and the Capital & Regional Group.

NewRiver's ability to invoke certain conditions to any firm offer, if made, to either lapse such firm offer or to delay completion of such firm offer would be subject to the Panel's consent. The Panel would need to be satisfied that the underlying circumstances were of "material significance" to NewRiver in the context of any Combination and this is a high threshold to fulfil. Consequently, there is a significant risk that NewRiver could be required to complete any firm offer, if made, even where certain conditions have not been satisfied or where a material adverse change has occurred to the Capital & Regional Group. If any of the events described above were to occur, they could result in additional costs and/or the delay or the failure (partial or otherwise) to realise the financial benefits and synergies relating to any Combination identified by the parties or could otherwise impact NewRiver's strategy and operations.

If any firm offer, if made, completes, the integration of the Capital & Regional Group with the NewRiver Group could result in operating difficulties and other adverse consequences

If any firm offer, if made, were to complete, the process of integrating Capital & Regional and its subsidiaries into the NewRiver Group could create unforeseen operating difficulties and expenditures and pose management, administrative and financial challenges. Specifically, integrating operations and personnel and pre-completion or post-completion costs could prove more difficult and/or more expensive than anticipated, thereby rendering the value of the Capital & Regional Group less than the value paid. The integration of the Capital & Regional Group could require significant time and effort on the part of NewRiver's management. The challenges of integrating the Capital & Regional Group could also be exacerbated by differences between the NewRiver Group's and the Capital & Regional Group's operational and business culture, the need to implement cost-cutting measures, difficulties in maintaining internal controls and difficulties in establishing control over cash flows and expenditures. Such difficulties in successfully integrating Capital & Regional could have an adverse effect on the Company's financial condition and results of operations.

The NewRiver Group could fail to realise the business growth opportunities, revenue benefits, cost savings, operational efficiencies and other benefits anticipated from any firm offer, if made

As stated at paragraph 3 above, the NewRiver Board believes that there is a strong strategic, operational and financial rationale for a Combination and that the Combined Group would benefit from enhanced scale, material cost savings, mid- to high-teens accretion to earnings per share, better access to acquisition and asset management opportunities, improved debt optionality, expected cost of capital benefits and the potential for increased share liquidity. However, these benefits may not be realised, for various reasons, including because the assumptions upon which the NewRiver Board determined the process of integration and the proposed cost savings could prove to be incorrect.

Under any of these circumstances, the cost savings, accretion to earnings per share, better access to acquisition and asset management opportunities, improved debt optionality, expected cost of capital benefits and the potential for increased share liquidity anticipated by the NewRiver Board to result from any firm offer, if made, may not be achieved as expected, or at all, or may be delayed, or may involve additional costs. To the extent that the NewRiver Group incurs higher integration costs or achieves lower revenue benefits or fewer cost savings than expected, the NewRiver Group's operating results, and prospects and the price of NewRiver Shares could suffer.

10.         CURRENT TRADING AND OUTLOOK

NewRiver

For details of NewRiver's current trading and prospects, please refer to NewRiver's First Quarter Company Update for the period from 1 April 2024 to 30 June 2024, released on 5 August 2024. A copy of the update is available on NewRiver's website at https://www.nrr.co.uk/investors/regulatory-news.

Capital & Regional

For details of Capital & Regional's current trading and prospects, please refer to Capital & Regional's Half Year Results to 30 June 2024, released on 1 August 2024. A copy of the announcement is available on Capital & Regional's website at https://capreg.com/wp-content/uploads/2024/09/cr-interim-press-release-hy24-final-aug-24.pdf.

11.         INTENTIONS FOR THE COMBINED GROUP

Listing and registered office

Following any Combination becoming effective, NewRiver would remain listed on the Equity Shares (Commercial Companies) category of the Official List and admitted to trading on the Main Market of the London Stock Exchange. The registered office of NewRiver would remain in London.

REIT status

Both the NewRiver Group and the Capital & Regional Group fall within the UK REIT regime and benefit from the tax efficiencies provided by that regime. The Combined Group would be expected to fall within the UK REIT regime and the relevant tax measures would continue to apply to the Combined Group.

Board and governance arrangements

Applications would be made to: (i) the FCA to cancel the listing and trading of the Capital & Regional Shares on the Equity Shares (Commercial Companies) category of the Official List and Main Market of the London Stock Exchange; and (ii) the JSE for the cancellation of the listing and trading of the Capital & Regional Shares on the Main Board of the JSE. Consequently, while NewRiver recognises the skills and experience of the Capital & Regional Board, Capital & Regional would no longer require listed company governance structures following any Combination and, accordingly, it is intended that the chair and other non-executive Capital & Regional Directors would step down from the Capital & Regional Board and the boards of Capital & Regional's subsidiaries (as applicable) with effect from any Combination becoming effective.

In addition, as announced by Capital & Regional on 8 May 2024, Lawrence Hutchings has resigned from his role as Chief Executive of Capital & Regional to take up a new role at Workspace Group PLC and it is intended that he would also step down from the Capital & Regional Board and the boards of Capital & Regional's subsidiaries (as applicable). It is also intended that Stuart Wetherly (Capital & Regional Group Finance Director) would step down from the Capital & Regional Board and the boards of Capital & Regional's subsidiaries (as applicable) on completion of a period of handover. It is anticipated that the current board and management structure of NewRiver would become the board and management structure of the Combined Group on completion of any Combination.

Portfolio

The NewRiver Directors believe that Capital & Regional's portfolio of community shopping centres would be complementary to NewRiver's existing portfolio and therefore would intend to implement individual business plans in respect of each asset and hold them within NewRiver's Core Shopping Centre portfolio. NewRiver has a track record of disciplined capital recycling based on risk-adjusted forward-looking returns and would intend to monitor the performance of Capital & Regional's assets in the 12 months post-completion of any Combination and, subject to market conditions, may consider the disposal of Capital & Regional's smaller shopping centres on a selective basis which would reduce the Combined Group's leverage.

Snozone operates three indoor snow sports centres in the UK and Spain and is a separate operating segment of Capital & Regional with its own management team. While Snozone would be expected to continue operating immediately post-completion of any Combination broadly as it does as at the date of this announcement, NewRiver is a specialist owner and manager of retail real estate and therefore it would be NewRiver's intention to undertake a strategic review of the Snozone business within the first 12 months post-completion of any Combination to establish whether it is a core hold for NewRiver or whether it would be more appropriate to recycle capital through its disposal. As at the date of this announcement, no decisions have been taken in relation to the Snozone business.

Management, employees, pensions, locations of business and research and development

Across the Combined Group, there would be duplicated costs and functions following completion of any Combination. NewRiver would therefore intend to seek operating cost and synergy benefits from the rationalisation of the board (as outlined above), and overlapping group functions including certain senior management.

In order to achieve the full potential benefits of any Combination, including the expected cost synergies, the NewRiver Directors would continue to undertake a detailed business, operational and administrative review of the Combined Group to assess how it can work most effectively and efficiently following completion of any Combination. This evaluation would include an assessment of the overlapping group functions of Capital & Regional and NewRiver, together with consolidating support and asset and property management functions (including the employment of certain Capital & Regional employees currently in asset and property management roles potentially being transferred by operation of law to one of NewRiver's current outsourced service providers), as well as removing duplicated costs in respect of certain corporate functions related to Capital & Regional's status as a listed and publicly traded company, which would no longer be required by the Combined Group. Any Combination would be likely to lead to a significant reduction in duplicative senior, corporate and operational Capital & Regional Group headcount, impacting a minority of total Capital & Regional Group employee headcount. Capital & Regional Group headcount would be further reduced by the proposed transfer of asset and property management staff by operation of law to one of NewRiver's current outsourced service providers (as referred to above).

NewRiver would intend to consolidate the head office functions of NewRiver and Capital & Regional so that the Combined Group could operate from a single location. It is anticipated that the Combined Group would operate from NewRiver's existing head office at 89 Whitfield Street, London, and that Capital & Regional's head office at Strand Bridge House, Strand, London, would, in due course, be sub-let. It is not envisaged that material changes would arise in relation to NewRiver's existing employees and headcount as a result of any Combination.

The proposals referred to above would remain subject to a fair and transparent process in accordance with applicable legal requirements (including, but not limited to, where required, any applicable prior information and consultation obligations).

The Combined Group would intend to safeguard existing statutory and contractual employment rights following completion of any Combination and NewRiver would not intend to make any material changes in the conditions of employment of existing Capital & Regional employees, including with respect to pension contributions.

Save as set out above, NewRiver would not otherwise intend any redeployment of Capital & Regional's fixed asset base. Owing to the nature of its business, Capital & Regional has no research and development function.

Neither Capital & Regional nor NewRiver have an existing defined benefit pension scheme.

Dividends

Following the completion of any Combination, the Combined Group would continue to pursue NewRiver's dividend policy of paying dividends equivalent to 80 per cent. of UFFO, with any top-up, including where required to ensure compliance with the REIT regime, to be confirmed at the Combined Group's full year results.

12.         PRE-CONDITIONS TO THE MAKING OF ANY FIRM OFFER

The making of any firm offer for the entire issued, and to be issued, ordinary share capital of Capital & Regional by NewRiver is subject to and conditional upon the following:

·          the satisfactory completion of the Placing (in accordance with the terms, and subject to the conditions, set out in the Placing Launch Announcement) (the "Placing Condition"); and

·                the receipt by NewRiver of confirmation from the Independent Capital & Regional Directors of their:

o    intention, in the event that a firm offer is made by NewRiver on the Possible Offer Terms and otherwise on the terms and subject to the conditions set out this announcement and in the Rule 2.7 Announcement (as defined below), to provide their unanimous, unqualified and unconditional recommendation to Capital & Regional Shareholders to vote, or procure the vote, in favour of the Scheme at the Court Meeting and of the Capital & Regional Resolution(s) to be proposed at the Capital & Regional General Meeting (or, in the event that any Combination would be implemented by way of a Takeover Offer, to accept, or procure the acceptance of, such Takeover Offer) (having been advised by Capital & Regional's financial advisers that the financial terms of such firm offer are fair and reasonable); and

o   agreement that an announcement of a firm offer by NewRiver under Rule 2.7 of the Code in substantially agreed form as at the date of this announcement (a "Rule 2.7 Announcement") on the Possible Offer Terms and otherwise on the terms and subject to the conditions set out in this announcement containing such recommendation may be released.

If either of the above pre-conditions is not satisfied or, if applicable, waived, NewRiver will be under no obligation to make a firm offer for Capital & Regional and to release a Rule 2.7 Announcement. However, there can be no certainty that a firm offer will ultimately be made, even if the above pre-conditions are satisfied or, if applicable, waived.

The Independent Capital & Regional Directors are not obliged to recommend any firm offer by NewRiver on the Possible Offer Terms. It is therefore possible that the Independent Capital & Regional Directors could decide against making such a recommendation, notwithstanding that the Placing Condition is satisfied or, if applicable, waived, in which case NewRiver would not be required to make a firm offer for Capital & Regional and release a Rule 2.7 Announcement.

13.         CONDITIONS

It is intended that any firm offer, if made, would be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. NewRiver would reserve the right to effect any firm offer, if made, by way of a Takeover Offer, subject to the consent of the Panel.

Any firm offer, if made, would be subject to the following conditions:

·         the receipt of approval from the FCA to the proposed change of control of a regulated entity within the Capital & Regional Group;

·          a resolution to approve the Scheme being passed by the requisite majority of Capital & Regional Shareholders;

·            the Capital & Regional Resolution(s) being passed at the Capital & Regional General Meeting by the requisite majority or majorities of Capital & Regional Shareholders;

·              the NewRiver Combination Resolution(s) being passed at the NewRiver General Meeting by the requisite majority or majorities of NewRiver Shareholders;

·           the FCA having acknowledged to NewRiver or its agent (and such acknowledgement not having been withdrawn) that the application for the admission of the New NewRiver Shares to the Equity Shares (Commercial Companies) category of the Official List has been approved and (after satisfaction of any conditions to which such approval is expressed to be subject) will become effective as soon as a dealing notice has been issued by the FCA and any listing conditions having been satisfied;

·            the London Stock Exchange having acknowledged to NewRiver or its agent (and such acknowledgement not having been withdrawn) that the New NewRiver Shares will be admitted to trading on the Main Market;

·           following the Capital & Regional Meetings, the Scheme being sanctioned by the Court (without modification, or with modification on terms agreed by NewRiver and Capital & Regional); and

·                following such sanction, a copy of the Scheme Court Order being delivered to the Registrar of Companies.

14.         CONSENTS

Jefferies, Kinmont, Panmure Liberum, Shore Capital, Deutsche Numis, Stifel and Java Capital have each given and not withdrawn their consent to the publication of this announcement with the inclusion herein of the references to their names in the form and context in which they appear.

Knight Frank, Colliers and CBRE have each given and not withdrawn their consent to the publication of their valuation reports in this announcement and the inclusion herein to the references to their names in the form and context in which they appear.

BDO has given and not withdrawn its consent to the inclusion of its report on the Quantified Financial Benefits Statement in Part B of Appendix 3 of this announcement.

15.         DOCUMENTS PUBLISHED ON A WEBSITE

In accordance with Rule 26.1 of the Code, copies of the following documents will, to the extent not already published there, by no later than 12.00 noon on the Business Day following the date of this announcement, be published on Capital & Regional's website at https://capreg.com/investor-info/possible-offer/ and NewRiver's website at https://www.nrr.co.uk/investors/possible-offer-for-capital-and-regional-plc/disclaimer during the Offer Period:

·                 this announcement;

·                 the irrevocable undertaking referred to in paragraph 6 above;

·         the consent letters from each of Jefferies, Kinmont, Panmure Liberum, Shore Capital, Deutsche Numis, Stifel, Java Capital, BDO, Knight Frank, Colliers and CBRE referred to in paragraph 14 above;

·                 the no material change letters from each of Knight Frank, Colliers and CBRE;

·             the reports from each of BDO and Jefferies in relation to the Quantified Financial Benefits Statement contained in Parts B and C, respectively, of Appendix 3 to this announcement;

·                 the Knight Frank valuation reports;

·                 the Colliers valuation report; and

·                 the CBRE valuation report.

The contents of Capital & Regional's website and NewRiver's website, and any website accessible from hyperlinks, are not incorporated into and do not form part of this announcement.

Appendix 1 to this announcement contains bases and sources of certain information contained in this announcement. Property valuation reports for Capital & Regional and NewRiver (as at 30 June 2024) pursuant to Rule 29 of the Code are set out in Appendix 2.

In the event that the assets within either Capital & Regional's or NewRiver's property portfolios were to be sold at the valuations contained in the valuation reports set out in Appendix 2 to this announcement, any gains realised on such disposals may be subject to taxation in the UK.

For the purposes of Rule 29.5 of the Code, the NewRiver Board confirms that each of Knight Frank and Colliers has confirmed to it that an updated valuation of the relevant properties within NewRiver's property portfolio (and, in the case of Knight Frank, Capital & Regional's property portfolio) as at the date of this announcement which it has valued would not be materially different from the valuations given by each of Knight Frank and Colliers as at 30 June 2024 and contained in their respective valuation reports set out in Appendix 2 to this announcement.

For the purposes of Rule 29.5 of the Code, the Capital & Regional Board confirms that CBRE has confirmed to it that an updated valuation of Capital & Regional's property portfolio as at the date of this announcement would not be materially different from the valuation given by CBRE as at 30 June 2024 and contained in CBRE's valuation report set out in Appendix 2 to this announcement.

For the purposes of Rule 28 of the Code, the Quantified Financial Benefits Statement is the responsibility of NewRiver and the NewRiver Directors. Appendix 3 to this announcement sets out the Quantified Financial Benefits Statement relating to cost savings and synergies arising out of any Combination and provides underlying information and bases of belief. Appendix 3 also includes reports from NewRiver's reporting accountant, BDO, and its lead financial adviser, Jefferies, in connection with the Quantified Financial Benefits Statement, as required pursuant to Rule 28.1(a) of the Code.

Appendix 4 to this announcement sets out certain information in relation to the Combined Group's debt position. Appendix 5 to this announcement sets out certain additional information in relation to the Combined Group's portfolio. Appendix 6 contains certain information in relation to the top five tenants of each of NewRiver, Capital & Regional and the Combined Group. Certain terms used in this announcement are defined in Appendix 7.

This is an announcement falling under Rule 2.4 of the Code and does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the code and there can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made. This announcement does not constitute an offer for sale of any securities or an invitation to purchase or subscribe for any securities.

Enquiries

NewRiver REIT plc
Allan Lockhart (Chief Executive) Will Hobman (Chief Financial Officer)	[phone]
Jefferies International Limited (Lead Financial Adviser and Joint Corporate Broker to NewRiver)
Philip Noblet Rishi Bhuchar Ed Matthews Andrew Morris William Brown	[phone]
Kinmont Limited (Joint Financial Adviser to NewRiver)
Gavin Kelly Mat Thackery	[phone]
Panmure Liberum Limited (Sole Sponsor and Joint Corporate Broker to NewRiver)
Jamie Richards David Watkins Amrit Mahbubani Nikhil Varghese	[phone]
Shore Capital Stockbrokers Limited (Joint Corporate Broker to NewRiver)
Mark Percy (Corporate Advisory) James Thomas (Corporate Advisory) Ben Canning (Corporate Broking) Malachy McEntyre (Corporate Broking)	[phone]
FTI Consulting (Communications Adviser to NewRiver)
Dido Laurimore Giles Barrie	[phone]
Capital & Regional plc
Lawrence Hutchings Stuart Wetherly	Via FTI Consulting
Deutsche Numis (Joint Financial Adviser, Joint Rule 3 adviser and Joint Broker to Capital & Regional)
Ben Stoop Stuart Ord Jack McLaren	[phone]
Stifel (Joint Financial Adviser, Joint Rule 3 adviser and Joint Broker to Capital & Regional)
Mark Young Nick Harland Jonathan Wilkes-Green Catriona Neville	[phone]
Java Capital (JSE Sponsor to Capital & Regional)
Daniel Ross Shivani Bhikha	[phone] [phone]
FTI Consulting (Communications Adviser to Capital & Regional)
Richard Sunderland Bryn Woodward Oliver Parsons	[phone]

Eversheds Sutherland (International) LLP is acting as legal adviser to NewRiver in connection with the Possible Offer.

CMS Cameron McKenna Nabarro Olswang LLP is acting as legal adviser to Capital & Regional in connection with the Possible Offer.

Further information

This announcement contains inside information in relation to NewRiver and Capital & Regional for the purposes of Article 7 of the Market Abuse Regulation. This announcement has been authorised for release on behalf of NewRiver by the NewRiver Board. The person responsible for arranging the release of this announcement on behalf of Capital & Regional is Stuart Wetherly, Company Secretary.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise, or the solicitation of any vote in favour or approval of any offer in any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction and any such offer (or solicitation) may not be extended in any such jurisdiction.

This announcement has been prepared in accordance with English law and the Code, and information disclosed may not be the same as that which would have been prepared in accordance with laws outside of the United Kingdom. The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

Disclaimers

Jefferies International Limited ("Jefferies"), Panmure Liberum Limited ("Panmure Liberum") and Shore Capital Stockbrokers Limited ("Shore Capital", and together with Jefferies and Panmure Liberum, the "Joint Brokers") are authorised and regulated by the FCA in the United Kingdom. Jefferies is acting as lead financial adviser, Panmure Liberum is acting as sole sponsor, and the Joint Brokers are each acting as joint broker, joint global co-ordinator and joint bookrunner exclusively for NewRiver and no one else in connection with the Possible Offer and shall not be responsible to anyone other than NewRiver for providing the protections afforded to their clients, nor for providing advice in connection with the Possible Offer or any matter referred to herein. None of the Joint Brokers nor any of their affiliates (nor any of them or their respective directors, officers, employees, representatives or agents) owe or accept any duty, liability or responsibility whatsoever (whether direct, indirect, consequential, whether in contract, in tort, under statute or otherwise) to any person who is not a client of such Joint Broker in connection with the Possible Offer, this announcement, any statement contained herein or otherwise.

Kinmont Limited ("Kinmont"), which is authorised and regulated in the United Kingdom by the FCA, is acting exclusively for NewRiver and no one else in connection with the Possible Offer and shall not be responsible to anyone other than NewRiver for providing the protections afforded to clients of Kinmont, nor for providing advice in connection with the Possible Offer or any matter referred to herein. Neither Kinmont nor any of its affiliates (nor any of its or their respective directors, officers, employees, representatives or agents) owes or accepts any duty, liability or responsibility whatsoever (whether direct, indirect, consequential, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Kinmont in connection with the Possible Offer, this announcement, any statement contained herein or otherwise.

Numis Securities Limited ("Deutsche Numis"), which is authorised and regulated in the United Kingdom by the FCA, is acting exclusively for Capital & Regional and no one else in connection with the matters set out in this announcement and will not regard any other person as its client in relation to the matters in this announcement and will not be responsible to anyone other than Capital & Regional for providing the protections afforded to clients of Deutsche Numis, nor for providing advice in relation to any matter referred to herein. Neither Deutsche Numis nor any of its affiliates (nor any of their respective directors, officers, employees or agents), owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Deutsche Numis in connection with this announcement, any statement contained herein or otherwise.

Stifel Nicolaus Europe Limited ("Stifel"), which is authorised and regulated in the United Kingdom by the FCA, is acting exclusively for Capital & Regional and no one else in connection with the matters set out in this announcement and will not regard any other person as its client in relation to the matters in this announcement and will not be responsible to anyone other than Capital & Regional for providing the protections afforded to clients of Stifel, nor for providing advice in relation to any matter referred to herein.

Java Capital Trustees and Sponsors Proprietary Limited ("Java Capital"), which is authorised and regulated in South Africa by the JSE, which is licensed as a securities exchange and is regulated by the Financial Sector Conduct Authority and the Prudential Authority of South Africa, is acting as JSE sponsor exclusively for Capital & Regional and for no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than Capital & Regional for providing the protections afforded to clients of Java Capital or for providing advice in relation to the contents of, or matters referred to in, this announcement or any matter referred to herein. Neither Java Capital nor any of its subsidiaries, affiliates or branches owes or accepts any duty, liability or responsibility whatsoever (whether direct, indirect, consequential, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Java Capital in connection with this announcement, any statement or other matter or arrangement referred to herein or otherwise.

Notice to US investors in Capital & Regional

US holders of Capital & Regional Shares should note that any firm offer, if made, would relate to the shares of an English company and would be made by means of a scheme of arrangement provided for under, and governed by, English company law. A transaction effected by means of a scheme of arrangement is not subject to the tender offer rules or the proxy solicitation rules under the US Exchange Act. Accordingly, any firm offer, if made, would be subject to the disclosure and procedural requirements and practices applicable in the United Kingdom to schemes of arrangement which differ from the disclosure requirements of United States tender offer and proxy solicitation rules.

The financial information included in this announcement and to be included in any Scheme Document if a firm offer is made (or, if any firm offer is implemented by way of a Takeover Offer, any Offer Document) has been, or will have been, prepared in accordance with International Financial Reporting Standards and thus may not be comparable to the financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States.

If a firm offer is made, any New NewRiver Shares would be expected to be issued in reliance upon the exemption from the registration requirements of the US Securities Act provided by Section 3(a)(10) thereof.

For the purposes of qualifying for the exemption from the registration requirements of the US Securities Act afforded by Section 3(a)(10) thereunder, Capital & Regional would advise the Court that its sanctioning of the Scheme would be relied on by NewRiver as an approval of the Scheme following a hearing on the fairness of the terms and conditions of the Scheme to Capital & Regional Shareholders, at which Court hearing all Capital & Regional Shareholders would be entitled to attend in person or through counsel to support or oppose the sanctioning of the Scheme and with respect to which notification has been given to all such holders.

None of the securities referred to in this announcement have been approved or disapproved by the SEC or any US state securities commission, nor have any such authorities passed judgment upon the fairness or the merits of any firm offer, if made, or determined if this announcement is accurate or complete. Any representation to the contrary is a criminal offence in the United States.

If, in the event a firm offer is made, NewRiver exercises the right to implement any Combination by way of a Takeover Offer and determines to extend the offer into the United States, the Takeover Offer would be made in compliance with applicable United States tender offer and securities laws and regulations and the requirements of US state securities laws, in each case, to the extent any exemptions thereunder are not applicable.

A US holder of Capital & Regional Shares should be aware that any transactions contemplated herein could have tax consequences for US federal income tax purposes and under applicable US state and local, as well as foreign and other, tax laws. In the event that a firm offer is made, each Capital & Regional Shareholder would be urged to consult with legal, tax and financial advisers in connection with making a decision regarding any Combination.

It may be difficult for US holders of Capital & Regional Shares to enforce their rights and any claims arising out of US federal laws, since each of NewRiver and Capital & Regional are located in a non-US jurisdiction, and some or all of their officers and directors may be residents of a non-US jurisdiction. US holders of Capital & Regional Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgement.

To the extent permitted by applicable law, in accordance with normal UK practice, NewRiver, certain affiliated companies and their nominees or brokers (acting as agents), may from time to time make certain purchases of, or arrangements to purchase, Capital & Regional Shares outside of the US, other than pursuant to any firm offer, if made, until the date on which any Combination and/or Scheme becomes Effective, lapses or is otherwise withdrawn. If such purchases or arrangements to purchase were to be made they would occur either in the open market at prevailing prices or in private transactions at negotiated prices and comply with applicable law, including the US Exchange Act. Any information about such purchases would be disclosed as required in the UK, would be reported to the Regulatory News Service of the London Stock Exchange and would be available on the London Stock Exchange website at www.londonstockexchange.com and via SENS.

Forward-looking statements

This announcement (including information incorporated by reference into this announcement), oral statements made regarding the Possible Offer, and other information published by NewRiver and Capital & Regional contain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of NewRiver and Capital & Regional about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

The forward-looking statements contained in this announcement include statements relating to the expected effects of any firm offer, if made, on NewRiver and Capital & Regional, the expected timing and scope of any firm offer, if made, and other statements other than historical facts. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "plans", "expects" or "does not expect", "is expected", "is subject to", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; and (ii) business and management strategies and the expansion and growth of NewRiver's or Capital & Regional's or the Combined Group's operations and potential synergies resulting from any firm offer, if made.

Although NewRiver and Capital & Regional believe that the expectations reflected in such forward-looking statements are reasonable, neither NewRiver nor Capital & Regional can give assurance that such expectations will prove to be correct. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

There is a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to: the ability to complete any firm offer, if made; the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other conditions on the proposed terms; changes in the global political, economic, business and competitive environments and in market and regulatory forces; changes in future exchange and interest rates; changes in tax rates; future business combinations or disposals; changes in general economic and business conditions; changes in the behaviour of other market participants; the anticipated benefits from any Combination not being realised as a result of changes in general economic and market conditions; weak, volatile or illiquid capital and/or credit markets; changes in the degree of competition in the geographic and business areas in which NewRiver and Capital & Regional operate; and changes in laws or in supervisory expectations or requirements. Other unknown or unpredictable factors could cause actual results to differ materially from those expected, estimated or projected in the forward-looking statements. If any one or more of these risks or uncertainties materialises or if any one or more of the assumptions proves incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors.

Neither NewRiver nor Capital & Regional, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. Given the risks and uncertainties, you are cautioned not to place any reliance on these forward-looking statements. Other than in accordance with their legal or regulatory obligations, neither NewRiver nor Capital & Regional is under any obligation, and each of NewRiver and Capital & Regional expressly disclaim any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on [phone] if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Quantified Financial Benefits Statement

Statements of estimated cost savings and synergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties and contingencies. As a result, the cost savings and synergies referred to in the event a firm offer is made may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. Neither the Quantified Financial Benefits Statement nor any other statement in this announcement should be construed as a profit forecast or interpreted to mean that the Combined Group's earnings in the first full year following any Combination becoming effective, or in any subsequent period, would necessarily match or be greater than or be less than those of NewRiver or Capital & Regional for the relevant preceding financial period or any other period. For the purposes of Rule 28 of the Code, the Quantified Financial Benefits Statement contained in this announcement is the responsibility of NewRiver and the NewRiver Directors.

No profit forecasts or estimates

No statement in this announcement is intended as a profit forecast or profit estimate for any period and no statement in this announcement should be interpreted to mean that earnings or earnings per share for NewRiver or Capital & Regional for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per share for NewRiver or Capital & Regional.

Rounding

Certain figures included in this announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables and paragraphs may vary slightly and figures shown as totals in certain tables and paragraphs may not be an arithmetic aggregation of the figures that precede them.

Rule 2.4 information

In accordance with Rule 2.4(c)(iii) of the Code, NewRiver confirms that it is not aware of any dealings in Capital & Regional Shares that would require it to offer a minimum level, or a particular form, of consideration under Rule 6 or Rule 11 of the Code. However, it has not been practicable for NewRiver to make enquiries of all persons acting in concert with it prior to the date of this announcement in order to confirm whether any details are required to be disclosed under Rule 2.4(c)(iii) of the Code. To the extent that any such details are identified following such enquiries, NewRiver will make an announcement disclosing such details as soon as practicable, and in any event by no later than the time it is required to make its Opening Position Disclosure under Rule 8.1 of the Code.

Publication on a website

In accordance with Rule 26.1 of the Code, a copy of this announcement will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on Capital & Regional's website at https://capreg.com/investor-info/possible-offer/ and NewRiver's website at https://www.nrr.co.uk/investors/possible-offer-for-capital-and-regional-plc/disclaimer by no later than 12 noon (London time) on the first Business Day following the date of this announcement.

For the avoidance of doubt, neither the contents of these websites nor the contents of any websites accessible from any hyperlinks is incorporated into or forms part of this announcement.

Requesting hard copy documents

In accordance with Rule 30.3 of the Code, Capital & Regional Shareholders may request a hard copy of this announcement (and any information incorporated by reference in this announcement), free of charge, by contacting Equiniti during business hours on 0371 384 2438 (from within the United Kingdom) and [phone] (from outside the United Kingdom) or by submitting a request in writing to Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines will be open between 9.00 a.m. to 5.30 p.m., Monday to Friday excluding public holidays in England and Wales.

Capital & Regional Shareholders recorded on the South African Register may request hard copies of this announcement by contacting JSE Investor Services at One Exchange Square, 2 Gwen Lane, Sandown, Sandton 2196, South Africa or on 011 713 0800 (from within South Africa) and [phone] (from outside South Africa) between 8.30 a.m. and 5.30 p.m. (London time) Monday to Friday (public holidays excepted). Calls to this number from persons who are not resident in South Africa are charged at the applicable international rate. Calls from a mobile device may incur network extras.

For persons who receive a copy of this announcement in electronic form or via a website notification, a hard copy of this announcement will not be sent unless so requested. Such persons may also request that all future documents, announcements and information to be sent to them in relation to the Combination should be in hard copy form.

appendix ‎1

SOURCES OF INFORMATION AND BASES OF CALCULATIONS

Unless otherwise stated, the following constitute the sources of information and bases of calculations in this announcement:

1.        All prices quoted for NewRiver Shares and Capital & Regional Shares are closing middle market quotations of a NewRiver Share or Capital & Regional Share (as applicable) derived from the Daily Official List of the London Stock Exchange on the relevant date(s).

2.        As at the close of business on the Last Practicable Date, 315,439,468 NewRiver Shares and 232,996,247 Capital & Regional Shares (including 399,297 Capital & Regional Shares held by the trustee of the Capital & Regional plc Employee Share Ownership Trust 2002 and available to be used to satisfy Capital & Regional Share Awards) were in issue and admitted to trading on the Main Market of the London Stock Exchange. The legal entity identifier for NewRiver is 2138004GX1VAUMH66L31. The ISIN for the NewRiver Shares is GB00BD7XPJ64. The legal entity identifier for Capital & Regional is 21380097W74N9OYF5Z25. The ISIN for the Capital & Regional Shares is GB00BL6XZ716.

3.         As at the close of business on the Last Practicable Date, there was an aggregate maximum of 4,627,179 Capital & Regional Shares subject to subsisting Capital & Regional Share Awards. This number does not include any additional Capital & Regional Shares which will be added to such subsisting Capital & Regional Share Awards in respect of any dividends which have not yet been paid, including the Capital & Regional Interim Dividend. The remuneration committee of the Capital & Regional Board has resolved that, in the context of the Combination, Capital & Regional Share Awards will vest (if not already vested) and be exercisable on the Scheme being sanctioned by the Court in respect of a maximum of (i) 1,631,777 Capital & Regional Shares plus (ii) 120,800 Capital & Regional Shares pursuant to a Capital & Regional Share Award expected to be granted immediately prior to the Scheme being sanctioned by the Court, and to vest and be exercisable on the Scheme being sanctioned by the Court plus (iii) any additional Capital & Regional Shares which will be added to such subsisting Capital & Regional Share Awards in respect of any dividends which have not been paid as at the Last Practicable Date. In the event that the Scheme is sanctioned by the Court on or after 1 January 2025, Capital & Regional Share Awards will vest and be exercisable on the Scheme being sanctioned by the Court in respect of an additional maximum of 454,692 Capital & Regional Shares (excluding any additional Capital & Regional Shares which will be added to such subsisting Capital & Regional Share Awards in respect of any dividends which have not yet been paid, including the Capital & Regional Interim Dividend).

4.         Any references to the issued, and to be issued, ordinary share capital of Capital & Regional are based on:

4.1        the 232,996,247 Capital & Regional Shares referred to in paragraph 2 above; plus

4.2         the 1,752,577 Capital & Regional Shares expected to be subject to Capital & Regional Share Awards when the Scheme is sanctioned by the Court; less

4.3         the 399,297 Capital & Regional Shares held by the trustee of the Capital & Regional plc Employee Share Ownership Trust 2002 and available to be used to satisfy Capital & Regional Share Awards; plus

4.4       the 454,692 additional Capital & Regional Shares in respect of which Capital & Regional Share Awards will vest and be exercisable if the Scheme is sanctioned by the Court after 1 January 2025; plus

4.5         up to 87,009 additional Capital & Regional Shares which may be added to subsisting Capital & Regional Share Awards in respect of the Capital & Regional Interim Dividend.

5.           All volume-weighted average NewRiver and Capital & Regional share prices are derived from data provided by Bloomberg for the relevant time periods.

6.           Property portfolio and valuation information relating to NewRiver is from the valuation reports produced by each of Knight Frank and Colliers as set out in Appendix 4 to this announcement.

7.           Property portfolio and valuation information relating to Capital & Regional is from the valuation report produced by Knight Frank and CBRE as set out in Appendix 4 to this announcement.

8.           The balance sheet financial information (excluding the property valuations) relating to Capital & Regional is extracted from the unaudited interim results of Capital & Regional for the six month period ended 30 June 2024 published on 1 August 2024.

9.           The profit and loss financial information relating to Capital & Regional is extracted from the audited consolidated financial statements of Capital & Regional for the year ended 30 December 2023 published on 30 April 2024, adjusted for the annualised impact of the acquisition of The Gyle, Edinburgh, which completed in September 2023, and the disposal of Luton and Redditch, which completed in March 2023 and September 2023, respectively.

10.         The financial information relating to NewRiver is extracted from the audited consolidated financial statements of NewRiver for the year ended 31 March 2024 published on 21 June 2024 and includes the proportionate share of joint ventures and associates (note that debt maturity does not include the impact of associate debt) and is adjusted for:

10.1       the disposals in the Napier joint venture in June 2023 (adjustment only made to profit and loss financial information);

10.2       the disposal of two Work Out assets during the financial year ended 31 March 2024 (adjustment only made to profit and loss financial information);

10.3       the disposal of one Work Out asset during the financial year ending 31 March 2025 (adjustment made to profit and loss and balance sheet financial information); and

10.4       the acquisition of Ellandi during the financial year ending 31 March 2025 (adjustment made to profit and loss and balance sheet financial information).

11.         UK Retail, UK Shopping Centres and UK Industrial sector average equivalent yields are extracted from the MSCI quarterly index as at June-2024.

12.         ICR is calculated by comparing actual net property income received versus net cash interest payable on a 12 month look-back basis.

13.         LTV is net debt divided by gross asset value per the Knight Frank valuation reports included in Appendix 4 to this announcement.

14.         All occupational metrics including, Occupational Cost Ratio, in-store sales growth, distance travelled and shopper average net income are calculated based on information provided by Lloyds Bank on customer spend, covering 98 per cent. by value of Capital & Regional's assets and 67 per cent. by value of NewRiver's assets.

15.         Combined portfolio statistics are calculated by the addition of the relevant figures for NewRiver and Capital & Regional on the basis outlined above.

16.         Combined capital structure statistics are calculated by the addition of the relevant figures for NewRiver and Capital & Regional adjusted for:

16.1       the cash component of the consideration payable pursuant to the Combination;

16.2       estimated transaction costs;

16.3       estimated net pre-tax run-rate recurring annual cost synergies of £6.2 million (see Appendix 3 to this announcement for the Quantified Financial Benefit Statement);

16.4       the estimated net proceeds of the Placing; and

16.5       the repayment of Capital & Regional's Hemel Hempstead, Ilford and Edinburgh secured loan facilities totalling £59 million.

17.         For the purposed of calculating the relevant shareholdings in NewRiver following the completion of any Combination in the event that a firm offer is made, the enlarged issued ordinary share capital of NewRiver is assumed to include 62,737,200 new NewRiver Shares proposed to be issued in connection with the Placing.

appendix ‎2

VALUATION REPORTS

Part A - Knight Frank Valuation Report (NewRiver Portfolio)

NewRiver REIT plc Valuation date:         30 June 2024

Important Notice to all readers of this report Unless you are the Client named within this report, or have been explicitly identified by us as a party to whom we owe a responsibility, a duty of care and who is entitled to rely on this report, Knight Frank LLP does not owe or assume any duty of care to you in respect of the contents of this report and you are not entitled to rely upon it.

NewRiver REIT plc 89 Whitfield Street London W1T 4DE (hereinafter referred to as the "Client" and the "Offeror") Jefferies International Limited (acting as lead financial adviser and joint corporate broker to the Client) 100 Bishopsgate London EC2N 4JL (hereinafter referred to as the "Offeror Financial Adviser") Panmure Liberum Limited (acting as sole sponsor and joint corporate broker to the Client) Ropemaker Place Level 12 25 Ropemaker Street London EC2Y 9LY (hereinafter referred to as the "Offeror Sponsor") Kinmont Limited (acting as joint financial adviser to the Client) 5 Clifford Street London W1S 2LG Shore Capital Stockbrokers Limited (acting as joint corporate broker to the Client) Cassini House 57 St James's Street London SW1A 1LD (together, hereinafter referred to as the "Offeror Addressees") Capital & Regional plc Strand Bridge House 138-142 Strand London WC2R 1HH (hereinafter referred to the "Offeree") Numis Securities Limited (trading as Deutsche Numis) (acting as joint financial adviser and joint corporate broker to Offeree) 45 Gresham Street London EC2V 7BF Stifel Nicolaus Europe Limited (acting as joint financial adviser and joint corporate broker to Offeree) 4th Floor 150 Cheapside London EC2V 6ET (together, hereinafter referred to as the "Offeree Joint Financial Advisers") (each an "Addressee" and together the "Addressees")

Our Ref: 1148756

Date of issue: 18 September 2024

Dear Sir/Madam

Valuation Report in respect of the properties of NewRiver REIT plc as at 30 June 2024 for inclusion in a Rule 2.4 Announcement, Rule 2.7 Announcement, Scheme Document and Prospectus ("Valuation Report")

Further to your instructions, we are pleased to provide our Valuation Report in respect of the freehold, heritable or leasehold interests in the properties ("Properties") set out in Appendix 1 (Schedule of Properties) below in connection with inclusion in a Rule 2.4 Announcement, Rule 2.7 Announcement, Scheme Document to be published by the Offeree and a Prospectus to be published by the Offeror, in connection with a possible acquisition of the entire issued, and to be issued, share capital of the Offeree by the Offeror (the "Transaction").

Knight Frank 55 Baker Street, London, W1U 8AN [phone] knightfrank.co.uk Knight Frank is the trading name of Knight Frank LLP. Knight Frank LLP is a limited liability partnership registered in England and Wales with registered number OC305934. Our registered office is at 55 Baker Street, London W1U 8AN where you may look at a list of members' names. If we use the term 'partner' when referring to one of our representatives, that person will either be a member, employee, worker or consultant of Knight Frank LLP and not a partner in a partnership.

Signed for and on behalf of Knight Frank LLP

Gavin Spreyer MRICS RICS Registered Valuer Partner, Valuation & Advisory [e-mail] T              [phone] M             [phone]
	Tom Withey MRICS RICS Registered Valuer Partner, Valuation & Advisory [e-mail] T              [phone] M         [phone]

1.   About this report

Engagement of Knight Frank LLP

1.1          This Valuation Report sets out our valuation, as at 30 June 2024 ("Valuation Date"), of the Properties ("Valuation"). This Valuation Report has been prepared in accordance with our Terms of Engagement letter dated 13 September 2024 addressed to the Addressees, and our General Terms of Business for Valuation Services (together the "Agreement").

Client

1.2          We have been instructed to prepare this Valuation Report by NewRiver REIT plc. However as set out above, this Valuation Report has also been addressed to other Addressees. 

Valuation standards

1.3          The Valuation has been undertaken in accordance with and complies with: (a) the current editions of RICS Valuation - Global Standards, which incorporate the International Valuation Standards, and the RICS UK National Supplement. References to the "Red Book" refer to either or both of these documents, as applicable; (b) Rule 29 of the City Code on Takeovers and Mergers (the "Code") as issued by the UK Panel on Takeovers and Mergers; (c) paragraphs 128-130 of the Financial Conduct Authority ("FCA") Primary Market Technical Note 619.1 (the "FCA Technical Note"); and (d) Rules 5.4.5 and 5.4.6 of the UK Prospectus Regulation Rules published by the FCA. This Valuation Report is an unqualified valuation report prepared in accordance with the requirements of Rule 29 of the Code by a valuer who has had access to sufficient information to prepare it.

1.4       The Properties have been valued by a valuer who is qualified for the purposes of the Valuation in accordance with Rule 29 of the Code. For the purposes of this Valuation Report, "UK Prospectus Regulation Rules" shall mean the prospectus regulation rules made by the FCA for the purposes of part 6 of the Financial Services and Markets Act 2000, as amended.

Status and experience of valuer

Valuer and expertise

1.5          The valuers, on behalf of Knight Frank LLP, with the responsibility for this Valuation Report are Gavin Spreyer MRICS, RICS Registered Valuer and Tom Withey MRICS, RICS Registered Valuer ("Responsible Valuers").  Parts of the Valuation have been undertaken by additional valuers as listed on our file.

1.6          We confirm that the Responsible Valuers and any additional valuers who value the Properties meet the requirements of the Red Book and Rule 29.3(a)(iii) of the Code in having sufficient current knowledge of the particular market and the skills and understanding to undertake the Valuation and prepare this Valuation Report competently and are appropriately qualified for the purposes of the Valuation as required by Rule 29.3(a)(ii) of the Code and are independent of the parties to the offer as required by Rule 29.3(a)(i) of the Code.

1.7          We confirm that we are not aware of any reason why we would not satisfy the requirements of Rule 29.3(a)(i) of the Code.

Conflicts of Interest:  Declaration and Disclosures

1.8        We confirm that the Responsible Valuers and additional valuers meet the requirements of the Red Book, having sufficient current knowledge of the particular market and the skills and understanding to undertake the Valuation competently.

1.9          We confirm that we have no material interest in the Client and we have acted as an External Valuer for the purpose of valuing the Properties pursuant to the terms of our letter of engagement dated 14 August 2017.

1.10        This Valuation Report has been vetted as part of Knight Frank LLP's quality assurance procedures.

1.11        We recognise and support the RICS Rules of Conduct and have procedures for identifying conflicts of interest.

Independence

1.12        Knight Frank LLP currently values the Properties, for financial reporting purposes, on behalf of the Client. The total fees for this assignment, earned by Knight Frank LLP (or other companies forming part of the same group of companies within the UK) from the Client (or other companies within the UK) is less than 5.0% of the total UK revenues. It is not anticipated that there will be a material increase in the proportion of the fees payable, or likely to be payable, by the Client.  

1.13        Other than these valuation services, Knight Frank LLP has no material involvement with the assets being valued and we confirm that we can report without any material conflict.

Use of this Valuation

Purpose of valuation

1.14        The Valuation and this Valuation Report are each provided solely for the purpose of:

(A)     inclusion in an announcement proposed to be made by the Offeror pursuant to Rule 2.4 of the Code in connection with the Transaction (the "Rule 2.4 Announcement");

(B)     inclusion in an announcement proposed to be made by the Offeror and the Offeree pursuant to Rule 2.7 of the Code in connection with the Transaction (the "Rule 2.7 Announcement");

(C)       inclusion in a scheme circular to be published by the Offeree in connection with the Transaction (the "Scheme Document");

(D)     inclusion in a prospectus to be published by the Offeror in connection with the Transaction and the issue and allotment of new shares in the capital of the Offeror pursuant, amongst other things, to the terms of the Transaction (the "Prospectus");

(E)     inclusion and/or reference to it in any other announcements, documents and/or supplementary documents required to be released by the Offeror and/or the Offeree pursuant to the Code and which directly relate to the Transaction (each a "Code Document"); and

(F)   publication on the Offeror's website and the Offeree's website in accordance with the requirements of Rule 26.3 of the Code and the UK Prospectus Regulation Rules,

(together, the "Purpose").

Reliance

1.15       This Valuation Report has been prepared for the Addressees only and is for the use of, and may be relied upon by, the Addressees for the Purpose. Notwithstanding the General Terms, we acknowledge that this Valuation Report will also be for the use of the shareholders of the Offeror and the Offeree for the Purpose set out above.

1.16     Save for: (a) the Addressees; and (b) any responsibility arising under the Code and/or the UK Prospectus Regulation Rules to any person as and to the extent there provided, in accordance with Clauses 3 & 4 of the General Terms and to the fullest extent permitted by law, we do not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in accordance with this Valuation Report or our statement, required by and given solely for the purposes of complying with the UK Prospectus Regulation Rules and Rule 29 of the Code.

Disclosure & publication

1.17        The Valuation has been prepared for the Client and in accordance with the Agreement which governs its purpose and use. As stated in the Agreement, this Valuation Report is confidential to the Addressees and must not be disclosed to any person other than for the Purpose without our express written consent. Other than for the Purpose, neither the whole, nor any part of this Valuation Report nor any reference thereto may be included in any prospectus, listing particulars, published document, circular or statement nor published in any way without our prior written approval of the form or context in which it may appear.

1.18        Notwithstanding paragraph ‎1.17 above, this Valuation Report may be disclosed as set out below:

Subject to the terms and conditions (but disregarding for these purposes clauses 4.3 to 4.6 (inclusive) of the General Terms) of the Agreement and our approval of the form and context thereof, we hereby confirm that we will authorise and consent to the disclosure of this Valuation Report:

i.          as may be required by any applicable court of competent jurisdiction or other competent judicial or governmental body or any applicable law or regulation or pursuant to government action, regulatory requirement or request;

ii.         to each Addressee's affiliates and each Addressee's affiliates' respective directors, officers, employees, agents, professional advisers, insurers, auditors and bankers that need to see the Valuation in connection with the Purpose;

iii.         in the case of the Offeror Addressees, in seeking to establish a defence or otherwise in connection with any actual or threatened legal or regulatory proceedings or investigation relating to the matters set out in this Valuation Report or claims that may be brought against them arising from their roles as financial adviser, sponsor and/or joint corporate broker (as applicable) to the Offeror;

iv.        in the case of the Offeree Joint Financial Advisers, in seeking to establish a defence or otherwise in connection with any actual or threatened legal or regulatory proceedings or investigation relating to the matters set out in this Valuation Report or claims that may be brought against them arising from their roles as joint financial adviser and/or joint corporate broker (as applicable) to the Offeree;

v.         in investor presentations and other investor education materials prepared in connection with the Transaction, and in any private discussions with Investors or other third parties in connection with the Transaction;

vi.        for the Purpose; and

vii.        to any Addressee's insurers in respect of any claim or potential claim relating to the Transaction, but in each case only on the basis that: (a) such disclosure is made to inform the recipient that Knight Frank have no duty of care and therefore shall have no liability to the recipient in respect of the relevant document; and (b) such recipient agrees not to provide a copy of the document to any other person without the prior written consent of Knight Frank.

1.19        It is a condition of such disclosure that each party in receipt of this Valuation Report that is not an Addressee agrees and acknowledges that this Valuation Report cannot be relied upon by them, and we do not accept any responsibility, duty of care or liability to them, whether in contract, tort (including negligence), misrepresentation or otherwise in respect of the Valuation and the information it contains.  For the avoidance of doubt, nothing in the preceding sentence shall affect our responsibility, for the purposes of Rule 5.3.2R(2)(f) of the UK Prospectus Regulation Rules, or under paragraphs 1.15 and 1.16 of this Valuation Report for the information contained in this Valuation Report.

1.20       This Valuation Report complies with Rule 29 of the Code and we understand that the publication or reproduction by the Offeror or the Offeree of this Valuation Report and/or the information contained herein as required by Rules 26 and 29 of the Code is necessary, including in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and any Code Document.

1.21        We confirm that this Valuation Report complies with Rules 5.4.5G and 5.4.6G of the UK Prospectus Regulation Rules and paragraphs 128 to 130 of the FCA Technical Note.

1.22        We confirm that the information contained in the Prospectus which is extracted from this Valuation Report is accurate, balanced and complete and is not misleading or inconsistent with this Valuation Report as prepared by us and has been properly extracted, derived or computed from this Valuation Report.

1.23        The Addressees agree and acknowledge that we shall have no liability for any error, omission or inaccuracy in this Valuation Report to the extent resulting from our reliance on information provided by or on behalf of the Client unless otherwise stated. Notwithstanding the above, we highlight the restricted nature of this instruction, in accordance with the Red Book; as a result the reliance that can be placed on the Valuation is limited.

Verification

1.24        We recommend that before any financial transaction is entered into based upon the Valuation, you obtain verification of any third-party information contained within this Valuation Report.

1.25        We would advise you that whilst we have valued the Properties reflecting current market conditions, there are certain risks which may be, or may become, uninsurable. Before undertaking any financial transaction based upon this Valuation, you should satisfy yourselves as to the current insurance cover and the risks that may be involved should an uninsured loss occur.

Limitations on liability

1.26        Knight Frank LLP's total liability for any direct loss or damage (whether caused by negligence or breach of contract or otherwise) arising out of or in connection with this Valuation is limited in accordance with the terms of the Agreement. Knight Frank LLP accepts no liability for any indirect or consequential loss or for loss of profits.

1.27        We confirm that we hold adequate and appropriate PII cover for this instruction.

1.28        No claim arising out of or in connection with this Valuation may be brought against any member, employee, partner or consultant of Knight Frank LLP.  Those individuals will not have a personal duty of care to any party and any claim for losses must be brought against Knight Frank LLP.

1.29        Nothing in this Valuation shall exclude or limit our liability in respect of fraud or for death or personal injury caused by our negligence or for any other liability to the extent that such liability may not be excluded or limited as a matter of law or regulation.

Scope of work

General Scope of Valuation Work

1.30      The Valuation has been undertaken, and this Valuation Report prepared, in accordance with the General Scope of Valuation Work appended to this Valuation Report at Appendix 2.

Information to be relied upon

1.31      We have relied upon the information previously provided to us by the Client, or by third parties in respect of the 30 June 2024 Valuation and will assume it to be correct for the purposes of the Valuation unless you inform us otherwise, subject only to any valuation that we have agreed to undertake.

1.32        Where we express an opinion in respect of (or which depends upon) legal issues, any such opinion must be verified by your legal advisors before any Valuation can be relied upon. 

1.33        We are instructed to rely on floor areas and tenancy information provided by the Client. We have not read lease agreements nor verified accordance between tenancy schedule and lease terms.

1.34        Knight Frank LLP cannot be held liable as regards the legal description of the Properties, its use, non-compliance with statutory requirements, technological and natural risks, the areas taken into account, the existence of concealed defects, presence of asbestos, adverse ground condition, presence of soil contamination, presence of insects, noxious animals or plants, rot, or deleterious materials, etc. This Valuation Report comments on the above on the basis of Technical or Environmental reports, if provided.

Inspections

1.35        In undertaking the Valuation and in our role as External Valuers under the existing statutory valuation, we have carried out an inspection of the Properties internally and externally. Our inspections of all the Properties have been undertaken within the last six months.

Information Provided

1.36        In this Valuation Report we have been provided with information by the Client, its advisors and other third parties. We have relied upon this information as being materially correct in all aspects.

1.37        In the absence of any documents or information provided, we have had to rely solely upon our own enquiries as outlined in this Valuation Report.

1.38      We have assumed there to be good and marketable titles to the Properties. We have made oral enquiries with the Client where appropriate and have taken account, insofar as we are aware, of unusual outgoings, planning proposals and onerous restrictions or local authority intentions which affect the Properties. However, this information has been provided to us on the basis that it should not be relied upon.

1.39        We have been supplied with details of tenure and tenancies and have valued on the basis that there are no undisclosed matters which would affect our valuation.

1.40        We have not undertaken any building surveys or environmental audits and are therefore unable to report that the Properties are free of any structural fault, rot, infestation or defects of any other nature, including inherent weaknesses due to the use in construction of materials now suspect. No tests were carried out on any of the technical services. However, we have reflected any apparent wants of repair in our opinion of value as appropriate.

1.41        The Properties have been valued individually, not as part of a portfolio.

Assumptions

1.42        We have assumed, except where we have been informed to the contrary, that there are no adverse ground or soil conditions or environmental contaminations which would affect the present or future use of the Properties and that the load bearing qualities of the site of each property are sufficient to support the buildings constructed or to be constructed thereon.

1.43       The valuation of the long leasehold interest held in The Martlets, Burgess Hill, RH15 9NN has been undertaken on a residual basis reflecting the partial refurbishment and part re-development of the property. Planning consent dated 2 July 2021 exists and has been implemented and the intention is to construct 100 one bedroom and 72 two bedroom apartments, together with commercial accommodation extending to 10,358 sq m (111,496 sq ft) and 16 additional residential units above. There are proposals to sell the land for the development of the 172 residential apartments, subject to restructure of the title. The total gross development value of the refurbishment/redevelopment is in the order of £77,150,000 with the total construction costs including professional fees and finance of £63,400,000.

1.44        With regard to the valuation of the freehold interest in Grays Shopping Centre, Grays, RM17 6QE we have had regard to the existing occupational profile. The Client is pursuing the potential for a comprehensive residential redevelopment and has submitted a planning application for up to 860 residential units, subject to viability. The valuation is based on the existing use value of the property but has regard to the 'hope' for future redevelopment that is implied in the scheme yield.

1.45        Since 30 June 2024 we are aware that Carpetright Plc which occupy a retail warehouse at Vale Gate Retail Park, Cardiff, CF5 6EH, have served notice of intent to file for administration. The full implications of any potential administration are as yet unknown and our valuation currently reflects the uncertainty of the situation.

1.46        We have been informed that there was a fire at Blackburn Retail/Leisure Park, Lower Audley Street, Blackburn, BB2 3DY on 6 May 2023 affecting Unit 2 which was vacant at the date of the fire and Unit 4 which was let to the tenant, B&M Retail Limited. We understand that Unit 4 has been subject to substantial damage and temporary closure and Unit 2 was vacant and also subject to substantial damage.  We understand that all insurance re-instatement policies are in place for both Unit 2 and Unit 4 and there is a sufficient level of rent cover on Unit 4, until such time as the building is fully repaired. We have valued both Unit 2 and Unit 4 adopting the investment method of valuation and at the date of valuation Unit 2 was being fitted out by the new tenant Jollyes and Unit 4 was not occupied by B&M and was still undergoing repair works.

1.47       The valuation of the Sprucefield Retail Park, Hillsborough Road, Lisburn, BT27 5UQ and The Moor, Sheffield, South Yorkshire, S1 4PF presented within this valuation report is the 100% freehold or long leasehold interests held in the properties by the respective partnerships.  The valuation does not detail the proportionate ownership and value thereof held by the Client.

1.48        In valuing the property at the Sprucefield Retail Park, Hillsborough Road, Lisburn, BT27 5UQ, terms have been agreed, subject to planning, for Lidl to acquire 2.70 acres of land for the development of a 27,000 sq ft foodstore.  There is also surplus development land without planning to which we have applied a value of £1m.  We have also had regard to the anticipated practical completion of three retail units in September 2024 pre-let to SC Hospitality Ltd (t/a Slim Chickens), Nandos Chickenland Ltd (t/a Nandos), and Tolren Ltd (t/a Starbucks) and have deducted the remaining construction costs of £1,866,999.

2.   Valuation

Methodology

2.1       The Valuation has been undertaken using appropriate valuation methodology and our professional judgement.

Comparative method

2.2          In undertaking the Valuation, we have made our assessment on the basis of a collation and analysis of appropriate comparable transactions, together with evidence of demand within the vicinity of the subject properties.  With the benefit of such transactions we have then applied these to the Properties, taking into account size, location, aspect and other material factors.

Investment method

2.3          The Valuation has been carried out using the comparative and investment methods.  In undertaking the Valuation, we have made our assessment on the basis of a collation and analysis of appropriate comparable investment and rental transactions, together with evidence of demand within the vicinity of the subject Properties. With the benefit of such transactions we have then applied these to the Properties, taking into account size, location, terms, covenant and other material factors.

Valuation bases

2.4       The basis of value for the Valuation as required by the Code is Market Value and therefore these valuations have been prepared on a Market Value basis.

Market Value

2.5          Market Value is defined within RICS Valuation - Global Standards as:

"The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion."

Portfolios

2.6          In a valuation of a property portfolio, we have valued the individual properties separately and we have assumed that the individual properties have been marketed in an orderly way.

Market Value

Market Value of Non Partnership Properties

2.7          We are of the opinion that the aggregate Market Value of the freehold, heritable and long leasehold interests in the Properties, subject to the existing tenancies on the assumptions highlighted above, as at the Valuation Date is:

£300,455,000 (Three Hundred Million, Four Hundred and Fifty Five Thousand Pounds).

Market Value of Partnership Properties

2.8          We are of the opinion that the aggregate Market Value of the freehold and long leasehold interests in the Properties, subject to the existing tenancies on the assumptions highlighted above, as at the Valuation Date is:

£99,200,000 (Ninety Nine Million, Two Hundred Thousand Pounds).

2.9          For the purposes of Rule 29.5 of the Code, we confirm that in our opinion the current valuation of the Properties as at the date of this Valuation Report would not be materially different from the valuation of the Properties as at the Valuation Date.

2.10        We are not aware, as a result of our role as an External Valuer of the Properties of any matter which would materially affect the Market Value of the Properties which is not disclosed in this Valuation Report (subject to the assumptions set out in this Valuation Report) and we are not aware of any matter in relation to this Valuation Report that we believe should be and has not yet been brought to the attention of the Addressees.

2.11        For the purposes of paragraph 130(vi) of the FCA Technical Note, we consider the: (i) 0.20% difference in respect of the Non Partnership Properties; and (ii) -0.77% difference in respect of the Partnership Properties, between the valuation figures in this Valuation Report and the equivalent figures reported in the Client's latest published annual or consolidated accounts for 31 March 2024 to be as a result of the occupational changes, capital expenditure and market movements.

Responsibility

2.12        For the purposes of the Code, we are responsible for this Valuation Report and accept responsibility for the information contained in this Valuation Report and confirm that to the best of our knowledge (having taken all reasonable care to ensure this is the case), the information contained in this Valuation Report is in accordance with the facts and contains no omissions likely to affect its import. This Valuation Report complies with and is prepared in accordance with, and on the basis of, the Code. We authorise its contents for the purposes of Rule 29 of the Code.  Knight Frank LLP has given and has not withdrawn its consent to the inclusion of this Valuation Report in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus.

2.13        We accept responsibility (including for the purpose of Rule 5.3.2R(2)(f) of the UK Prospectus Regulation Rules) for the information contained in this Valuation Report and to the best of our knowledge, the information contained in this Valuation Report is in accordance with the facts and the Valuation Report makes no omission likely to affect its import.

Consent

2.14        Knight Frank LLP has given and has not withdrawn its consent to the inclusion of this Valuation Report in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus  published by the Client and/or the Offeree in the form and context in which it is included.

2.15        We consent to the inclusion of the Valuation and this Valuation Report and any extracts or references thereto in the Prospectus and the reference to our name in the form and context in which they are included in the Prospectus (subject to us first approving the form and context in which our Valuation Report will appear).

Appendix 1    List of Properties

Property Address - Retail Warehouse	Tenure	Sector	Date of Inspection
Hollywood Retail & Leisure, Barrow-In-Furness, LA14 2NA	Freehold	Retail Warehouses	01/07/2024
Waterfront Retail Park, Barry, CF63 4BA	Long Leasehold	Retail Warehouses	07/02/2024
Blackburn Retail/Leisure Park, Lower Audley Street, Blackburn, BB2 3DY	Long Leasehold	Retail Warehouses	02/07/2024
Enterprise 5 Retail Park, Bradford Road, Bradford, BD10 8EG	Long Leasehold	Retail Warehouses	02/07/2024
Vale Gate Retail Park, Cardiff, CF5 6EH	Freehold	Retail Warehouses	07/02/2024
Rishworth Centre & Railway St, Dewsbury, WF12 8EQ	Freehold	Retail Warehouses	02/07/2024
Cuckoo Bridge Retail Park, Glasgow Road, Dumfries, DG2 9BF	Heritable	Retail Warehouses	01/07/2024
Eastham Point, New Chester Road Wirral, Eastham, CH62 8HJ	Freehold	Retail Warehouses	02/07/2024
South Lakeland Retail Park, Appleby Road, Kendal, LA9 6DU	Long Leasehold	Retail Warehouses	01/07/2024
Kirkstall Retail Park, 1 Savins Mill Way, Leeds, LS5 3RP	Long Leasehold	Retail Warehouses	02/07/2024
The Speke Retail Park, Speke, Liverpool, L24 2WZ	Long Leasehold	Retail Warehouses	02/07/2024

Property Address - Retail Warehouse (Partnership Property)	Tenure	Sector	Date of Inspection
Sprucefield Retail Park, Hillsborough Road, Lisburn, BT27 5UQ	Freehold	Retail Warehouses	14/08/2024

Property Address - Shopping Centres & Single Retail Unit	Tenure	Sector	Date of Inspection
60-64 Church Walk, Burgess Hill, RH15 9AS	Freehold	Single shop unit with vacant upper parts	30/06/2024
The Martlets, Burgess Hill, RH15 9NN	Long Leasehold	Former shopping centre for Development/Refurbishment	30/06/2024
Locks Heath Shopping Village, Fareham, SO31 6DX	Freehold	Shopping centre	29/06/2024
Grays Shopping Centre, Grays, RM17 6QE	Freehold	Shopping centre	28/06/2024
Priory Meadow Shopping Centre, Hastings, TN34 1PH	Long Leasehold	Shopping centre	30/06/2024
The Avenue Shopping Centre, Newton Mearns, G77 6AA	Heritable	Shopping centre	01/07/2024
Abbey Centre, Newtownabbey, BT37 9UH	Freehold	Shopping centre	02/07/2024
The Forum Shopping Centre, Wallsend, NE28 8JP	Freehold	Shopping centre	02/07/2024

Property Address - Shopping Centre (Partnership Property)	Tenure	Sector	Date of Inspection
The Moor, Sheffield, S1 4PF	Long Leasehold	Shopping Centre	14/08/2024

Appendix 2    General Scope of Valuation Work

General Scope of Valuation Work

As required by the RICS Valuation - Global Standards (the "Red Book") this General Scope of Valuation Work describes information we will rely on, the investigations that we will undertake, the limits that will apply to those investigations and the assumptions we will make, unless we are provided with or find information to the contrary.

Definitions

"Assumption" is something which it is agreed the valuer can reasonably accept as being true without specific investigation or verification.

"Property"  is the interest which we are instructed to value in land including any buildings or other improvements constructed upon it.

"Valuation" shall mean any valuation report, supplementary report or subsequent/update report, produced pursuant to this engagement and any other replies or information we produce in respect of any such report and/or any relevant property.

1.      Property to be valued

1.1    We will exercise reasonable care and skill (but will not have an absolute obligation to you) to ensure that the Property, identified by the address provided in your instructions, is the Property inspected by us and included within our Valuation.  If there is ambiguity as to the Property address, or the extent of the Property to be valued, this should be drawn to our attention in your instructions or immediately upon receipt of our Valuation.

1.2    We will rely upon information provided by you or your legal advisers relating to the Property to be valued, including any tenancies, sub-tenancies or other third-party interests.  Any information on title and tenure we are provided with by a third party during the course of our investigations will be summarised in our Valuation but will be subject to verification by your legal advisers.  We will be under no obligation to make any searches of publicly available land registers.  We will not make or commission any investigations to verify any of this information.  In particular, we will not investigate or verify that :

(a)  all title information relied upon and referred to in our Valuation is complete and correct,

(b)  all documentation is satisfactorily drawn,

(c)  there are no undisclosed onerous conditions or restrictions that could impact on the marketability of the Property valued, and

(d)  there is no material litigation pending, relating to the Property valued.

1.3    Where we provide a plan of the Property in our Valuation this is for identification only.  While the plan reflects our understanding based on the information provided to us it must not be relied upon to define boundaries, title or easements.

1.4    Our Valuation will include those items of plant and machinery normally considered to be part of the service installations to a building and which would normally pass with the Property on a sale or letting.  We will exclude all other items of process plant, machinery, trade fixtures and equipment, chattels, vehicles, stock and loose tools, and any tenant's fixtures and fittings.

1.5    Unless agreed otherwise in writing we will neither investigate nor include in our Valuation any unproven or unquantified mineral deposits, felled timber, airspace or any other matter which may or may not be found to be part of the Property but which would not be known to a buyer or seller on the valuation date.

1.6    Unless agreed otherwise our Valuation will make the Assumption that all parts of the Property occupied by the current owner on the valuation date would be transferred with vacant possession and any tenancies, sub-tenancies or other third party interests existing on the valuation date will continue. 

1.7    Where requested legal title and tenancy information is not provided in full, in the absence of any information provided to the contrary, our Valuation will make the Assumption that the subject Property has good title and is free from any onerous restrictions and/or encumbrances or any such matter which would diminish its value.

2.      Portfolios

2.1    Where instructed to value a portfolio of properties, unless specifically agreed with you otherwise, we will value each Property separately on the basis that it is offered individually to the market.

3.      Building specification and condition

3.1    We will note the general condition of any building and any building defect brought to our attention and reflect this in our Valuation.  We will not undertake a detailed investigation of the materials or methods of construction or of the condition of any specific building element.  We will not test or commission a test of service installations.  Unless we become aware during our normal investigations of anything to the contrary and mention this in our Valuation, our Valuation will , make the Assumption that:

(a)  any building is in a condition commensurate with its age, use and design and is free from significant defect,

(b)  no construction materials have been used that are deleterious, or likely to give rise to structural defects,

(c)  no potentially hazardous or harmful materials are present, including asbestos,

(d)  all relevant statutory requirements relating to use, construction and fire safety have been complied with,

(e)  any building services, together with any associated computer hardware and software, are fully operational and free from impending breakdown or malfunction and

(f)   the supply to the building of electricity, data cable network and water, are sufficient for the stated use and occupancy.

3.2    If you require information on the structure or condition of any building our specialist building surveyors can provide a suitable report.as a separate service.

4.      Environment and sustainability

4.1    Our Valuation will reflect the market's perception of the environmental performance of the Property and any identified environmental risks as at the valuation date.  This may include reflecting information you provide to us that has been prepared by suitably qualified consultants on compliance of existing or proposed buildings with recognised sustainability metrics.  Where appropriate we will research any freely available information issued by public bodies on the energy performance of existing buildings.

4.2    We will investigate whether the Property has a current Energy Performance Certificate on the relevant government register and report  our findings.  As part of our valuation service we will not advise on the extent to which the Property complies with any other Environmental, Social or Governance (ESG) metrics or to what extent the building, structure, technical services, ground conditions, will be impacted by future climate change events, such as extreme weather, or legislation aimed at mitigating the impact of such events.  If required KF may be able to advise on ESG considerations and their long-term impact on a Property as a separate service.

5.      Ground conditions and contamination

5.1    We may rely on any information you provide to us about the findings and conclusions of any specialist investigations into ground conditions or any contamination that may affect the Property.  Otherwise our investigations will be limited to research of freely available information issued by Government Agencies and other public bodies for flood risk, recorded mining activity and radon.  We will also record any common sources or indicators of potential contamination observed during our inspection. 

5.2    Unless specifically instructed by you to do so, we will not commission specialist investigations into past or present uses either of the Property or any neighbouring property to establish whether there is contamination or potential for contamination, or any other potential environmental risk.  Neither will we be able to advise on any remedial or preventive measures.

5.3    We will comment on our findings and any other information in our possession or discovered during our investigations in our Valuation.

5.4    Unless we become aware of anything to the contrary and mention this in our Valuation, for each Property valued our Valuation will make the Assumption that:

(g)  the site is physically capable of development or redevelopment, when appropriate, and that no extraordinary costs will be incurred in providing foundations and infrastructure,

(h)  there are no archaeological remains on or under the land which could adversely impact on value,

(i)   the Property is not adversely affected by any form of pollution or contamination,

(j)   there is no abnormal risk of flooding,

(k)  there are no high voltage overhead cables or large electrical supply equipment affecting the Property

(l)   the Property does not have levels of radon gas that will require mitigation work, and

(m) there are no invasive species present at the Property or within close proximity to the Property.

(n)  There are no protected species which could adversely affect the use of the Property.

6.      Planning and highway enquiries

6.1    We may research freely available information on planning history and relevant current policies or proposals relating to any Property being valued using the appropriate local authority website.   We will not commission a formal local search.  Our Valuation will make the Assumption that any information obtained will be correct, but our findings should not be relied on for any contractual purpose.

6.2    Unless we obtain information to the contrary, Our Valuation will make the Assumption that:

(o)  the use to which the Property is put is lawful and that there is no pending enforcement action,

(p)  there are no local authority proposals that might involve the use of compulsory purchase powers or otherwise directly affect the Property.

6.3    We do not undertake searches to establish whether any road or pathways providing access to the Property are publicly adopted.  Unless we receive information to the contrary or have other reason to suspect an adjoining road or other access route is not adopted, our Valuation will make the Assumption that  all such routes are publicly adopted.

7.      Other statutory and regulatory requirements

7.1    A property owner or occupier may be subject to statutory regulations depending on their use.  Depending on how a particular owner or occupier uses a building, the applicable regulations may require alterations to be made to buildings.  Our valuation service does not include identifying or otherwise advising on works that may be required by a specific user in order to comply with any regulations applicable to the current or a proposed use of the Property.  Unless it is clear that similar alterations would be required by most prospective buyers in the market for a property, our Valuation will make the Assumption that no work would be required by a prospective owner or occupier to comply with regulatory requirements relating to their intended use.

7.2    We will not investigate or comment on licences or permits that may be required by the current or any potential users of the Property relating to their use or occupation.

8.      Measurements

8.1    Where building floor areas are required for our valuation, unless we have agreed to rely on floor areas provided by you or a third party, we will take measurements and calculate the appropriate floor areas for buildings in accordance with the RICS Property Measurement Professional Standard.   These measurements will either be wholly taken by us during our inspection or from scaled drawings provided to us and checked by sample measurements on site.  The floor areas will be within a tolerance that is appropriate having regard to the circumstances and purpose of the valuation instruction.

8.2    Where required, any site areas will be calculated from our understanding of the boundaries using digital mapping technology, subject to clause 1.3 above.

9.      Investment properties

9.1    Where the Property valued is subject to a tenancy or tenancies, we will have regard to the market's likely perception of the financial status and reliability of tenants in arriving at our valuation.  We will not undertake detailed investigations into the financial standing of any tenant. Unless advised by you to the contrary our Valuation will be make the Assumption that there are no material rent arrears or breaches of other lease obligations.

10.    Development properties

10.1  If we are instructed to value Property for which development, redevelopment or substantial refurbishment is proposed or in progress, we strongly recommend that you supply us with build cost and other relevant information prepared by a suitably qualified construction cost professional, such as a quantity surveyor.  We shall be entitled to rely on such information in preparing our valuation.  If a professional estimate of build costs is not made available, we will rely on published build cost data but this must be recognised as being less reliable as it cannot account for variations in site conditions and design.  This is particularly true for refurbishment work or energy efficiency and environmental upgrades.  In the absence of a professionally produced cost estimate for the specific project we may need to qualify our report and the reliance that can be placed on our valuation.

10.2  For Property in the course of development, we will reflect the stage reached in construction and the costs remaining to be spent at the date of valuation.  We will  have regard to the contractual liabilities of the parties involved in the development and any cost estimates that have been prepared by the professional advisers to the project.  For recently completed developments we will take no account of any retentions, nor will we make allowance for any outstanding development costs, fees, or other expenditure for which there may be a liability.

11.    VAT, taxation and costs

11.1  The reported valuation will be our estimate of the price that would be agreed with no adjustment made for costs that would be incurred by the parties in any transaction, including any liability for VAT, stamp duty or other taxes.  It is also gross of any mortgage or similar financial encumbrance.

12.    Property insurance

12.1  Except to the limited extent provided in clause 3 and clause 4 above we do not investigate or comment on how potential risks would be viewed by the insurance market.  Our Valuation will be on the Assumption that each Property would, in all respects, be insurable against all usual risks including fire, terrorism, ground instability, extreme weather events, flooding and rising water table at normal, commercially acceptable premiums.

13.    Reinstatement cost estimates

13.1  We can only accept a request to provide a building reinstatement cost estimate for insurance purposes alongside our Valuation of the Property interest on the following conditions:

(q)  the assessment provided is indicative, without liability and only for comparison with the current sum insured, and

(r)   The building is not specialised or listed as being of architectural or historic importance.

13.2  Otherwise we can provide an assessment of the rebuilding cost by our specialist building surveyors as a separate service.

14.    Legal advice

14.1  We are appointed to provide valuation opinion(s) in accordance with our professional duties as valuation surveyors.  The scope of our service is limited accordingly.  We are not qualified legal practitioners and we do not provide legal advice.  If we indicate what we consider the effect of any provision in the Property's title documents, leases or other legal requirements may have on value, we strongly recommend that this be reviewed by a qualified lawyer before you take any action relying on our valuation.

15.    Loan security

15.1  If we are requested to comment on the suitability of the Property as a loan security we are only able to comment on any risk to the reported value that is inherent in either its physical attributes or the interest valued.  We will not comment on the degree and adequacy of capital and income cover for an existing or proposed loan or on the borrower's ability to service payments.

Part B - Colliers Valuation Report (NewRiver Portfolio)

 

Table of Contents

Valuation

Introduction         2

Purpose of Valuation         2

Valuation Standards         3

Basis of Valuation         3

Date of Valuation         3

Status of Valuer and Conflicts of Interest 4

The Properties         4

Assumptions, Extent of Investigations and Sources of Information  4

Property Inspections & Measurements  5

Tenure                                          5

Valuation Summary         6

Material changes since the Valuation Date  6

Reliance, Confidentiality and Disclosure  6

18 September 2024
NewRiver REIT Plc 89 Whitfield Street London W1T 4DE (referred to hereafter as the "Offeror" or "you") Jefferies International Limited (acting as lead financial adviser and joint corporate broker to the Offeror) 100 Bishopsgate London EC2N 4JL (hereinafter referred to as the "Offeror Financial Adviser") Panmure Liberum Limited (acting as sole sponsor and joint corporate broker to the Offeror) Ropemaker Place 25 Ropemaker Street London EC2Y 9LY (hereinafter referred to as the "Offeror Sponsor") Kinmont Limited (acting as joint financial adviser to the Offeror) 5 Clifford Street London W1S 2LG Shore Capital Stockbrokers Limited (acting as joint corporate broker to the Offeror) Cassini House 57 St James's Street London SW1A 1LD (together, hereinafter referred to as the "Offeror Addressees") Capital & Regional plc Strand Bridge House 138-142 Strand London WC2R 1HH (hereinafter referred to as the "Offeree") Numis Securities Limited (trading as Deutsche Numis) (acting as joint financial adviser and joint corporate broker to the Offeree) 45 Gresham Street London EC2V 7BF Stifel Nicolaus Europe Limited (acting as joint financial adviser and joint corporate broker to the Offeree) 4th Floor 150 Cheapside London EC2V 6ET (together, hereinafter referred to as the "Offeree Joint Financial Advisers")

Dear Sirs,

The Client:                             NewRiver REIT plc

The Portfolio:                        21 Properties Within The 'NewRiver REIT' Portfolio

Date Of Valuation:                30th June 2024

Introduction

Colliers International Property Consultants Limited (hereafter referred to as either "Colliers" or "we") have been instructed by NewRiver REIT Plc (hereafter referred to as either the "Company" or "you") to provide an indication of value for 21 properties held within the 'NewRiver REIT' portfolio (the "Properties") as at 30^th June 2024 (the "Valuation Date") (the Valuation).

Purpose of Valuation

This valuation report (the "Valuation Report") is provided for the purpose of:

a)    inclusion in an announcement proposed to be made by the Company under Rule 2.4 of the City Code on Takeovers and Mergers as issued by the UK Panel on Takeovers and Mergers (the "Code") in connection with the proposed acquisition by the Offeror of the entire issued share capital of the Offeree (the" Transaction") (the "Rule 2.4 Announcement"). For this purpose, the Report will be dated with the same date as the Rule 2.4 Announcement;

b)    inclusion in an announcement proposed to be made by the Company and/or the Offeree under Rule 2.7 of the Code in connection with the Transaction (the "Rule 2.7 Announcement"). For this purpose, the Report will be dated with the same date as the Rule 2.7 Announcement;

c)     inclusion in a scheme circular to be published by the Offeree in connection with the Transaction effected by way of a scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme Document"). For this purpose, the Report will be dated with the same date as the Scheme Document;

d)    in the event that the Transaction is to be effected by way of a takeover offer under Part 28 of the Companies Act 2006, inclusion in an offer document to be published by the Company in connection with the Transaction (the "Offer Document"). For this purpose, the Report will be dated with the same date as the Offer Document;

e)    inclusion in a combined circular and prospectus to be published by the Company in connection with the Transaction and the issue and allotment of new shares in the capital of the Company, amongst other things, pursuant to the terms of the Transaction (the "Prospectus"). For this purpose, the Report will be dated with the same date as the Prospectus; 

f)     inclusion and/or reference to it in any other announcements, documents and/or supplementary documents required to be released by the Company and/or the Offeree which directly relate to the Transaction (each a "Code Document"); and

g)    publication on the Offeror's website and/or the Offeree's website in accordance with the requirements of Rule 26.3 of the Code and the UK Prospectus Regulation Rules,

(together, the "Purpose").

Therefore, in accordance with PS 2.5 of the Red Book (as defined below) and UK VPS 3 we have made certain disclosures in connection with this Valuation instruction and our relationship with you. These are included below.

For the purposes of this Valuation Report, "Prospectus Regulation Rules" means the prospectus regulation rules made by the FCA for the purposes of part 6 of the Financial Services and Markets Act 2000, as amended.

Valuation Standards

This Valuation Report has been prepared for a Regulated Purpose as defined in accordance with the RICS Valuation - Global Standards (2022), which incorporates the International Valuation Standards, and the RICS UK National Supplement (2018), in each case current as at the Valuation Date (the "Red Book"). The Valuation has been undertaken in accordance with and complies with (i) Rule 29 of the Code : (ii) the FCA's Primary Market Technical Note 619.1; (iii) the UK Listing Rules; and (iv) the UK Prospectus Regulation Rules (and in particular Rule 5.4.5G) published by the FCA. This Valuation Report is an unqualified valuation report prepared in accordance with the requirements of Rule 29 of the Code by a valuer who has had access to sufficient information to prepare it.

We confirm that Colliers complies with the competency and objectivity guidelines under PS 2 of the Red Book and that we have undertaken the Valuation acting as 'external valuers' qualified for the purposes of this Valuation.

In order to comply with these Valuation Standards, our files may be subject to monitoring by the RICS.

Basis of Valuation

The basis of value (as required by the Code) is "Market Value", as defined in International Valuation Standards 104, Paragraph 30.1 (and the Red Book):

'The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.'

This is also set out in the General Assumptions and Definitions contained in Appendix 1 attached to this Valuation Report.

Our Valuation has been undertaken using appropriate valuation methodology and our professional judgment.

The Valuers' (as defined below) opinion of Market Value was primarily derived using recent comparable market transactions on arm's length terms, where available, and appropriate valuation techniques (The Investment Method).

Date of Valuation

30th June 2024.

Status of Valuer and Conflicts of Interest

Colliers has been instructed as External Valuer, as defined in accordance with the Red Book.

This Valuation has been prepared under the supervision of Richard Barrett BSc MRICS and Sara Duncan FRICS MRTPI (the "Valuers"). We confirm that the Valuers (and any additional valuers who may have undertaken parts of the Valuation) collectively (i) fall within the requirements as to competence as set out in PS2 of the Red Book and are registered in accordance with the RICS Valuer Registration Scheme ("VRS") and that they are (a) appropriately qualified; and (b) meet the requirements of the Red Book, having sufficient current local and national knowledge of the property market involved and the skills and understanding to undertake the Valuation and prepare the Valuation Report competently; and (ii) meet the requirements of Rule 29.3(a)(iii) of the Code in having sufficient current knowledge of the particular market and the skills and understanding to undertake the Valuation and prepare this Valuation Report competently and, are appropriately qualified for the purposes of the Valuation as required by Rule 29.3(a)(ii) of the Code, and are independent of the parties to the offer which is the subject of the Transaction as required by Rule 29.3(a)(i) of the Code. We further confirm that we are not aware of any reason why we would not satisfy the requirements of Rule 29.3(a)(i) of the Code.

As fully disclosed to you previously, and as set out in our terms of engagement (the "Engagement"), we confirm that Colliers have current, anticipated and previous recent involvement with the Properties as follows:-

We have valued the Portfolio for accounting purposes since 2009.

We do not consider that this involvement represents a conflict of interest and the Addressees have confirmed to us that they also consider this to be the case. You have confirmed that all parties subject to the 'Purpose of Valuation' have provided their Informed Consent to proceed with this instruction.

The total fees, including the fee for this assignment, earned by Colliers (or other companies forming part of the same group of companies within the UK) from the Company (or other companies forming part of the same group of companies) is less than 5.0% of the total UK revenues for the financial year ending 31 December 2023.

We confirm that we comply with the requirements of independence and objectivity under PS2 of the Red Book and have no conflict of interest in respect of the Company or Properties to the best of our knowledge.

The Properties

The Properties comprise a portfolio of 21 properties (brief details of which are set out in Appendix 2 to this report), located within towns and cities throughout the United Kingdom.

The Properties are generally held as investments although there are parts of some Properties which are vacant and non-income producing.

Assumptions, Extent of Investigations and Sources of Information

We have assumed that the information supplied to us by the Company and their professional advisers, in respect of all material pertaining to the Properties, is both complete, accurate and up to date. It follows that we have made an assumption that details of all matters likely to affect value have been provided to us. We have not independently verified the information provided.

We have relied upon this information in preparing this Report and our Valuation and do not accept responsibility or liability for any errors or omissions in that information or documentation provided to us, nor for any consequences arising. Colliers also accepts no responsibility for subsequent changes in the information that we have not been made aware of.

Furthermore, we have assumed any information supplied can, if necessary, be verified. Should any of the information provided be found to be inaccurate or incomplete there could be a variation in value.

We have not inspected the title deeds and apart from those disclosed to us, we have assumed that all the Properties are free from outgoings and that there are no unusual, onerous or restrictive covenants in the titles or leases which would affect the values. Similarly, we have not reviewed leases.

Our Valuation is prepared on the basis that the Properties have good and marketable titles and are free of any undisclosed onerous burdens, outgoings or restrictions.

Our General Assumptions and Definitions are contained within Appendix 1 attached to this Report.

Property Inspections & Measurements

All of the Properties were inspected close to the date of their acquisition by suitably qualified surveyors and continue to be inspected, at least tri-annually, on a rolling programme. We have not been instructed to reinspect the Properties as part of this instruction and have therefore made the assumption that there have been no material changes to the Properties or immediate surroundings since our last inspection. Where there have been material changes to the Properties, we have had regard to the information provided to us by the Company. We have then reflected this in the Valuation.

As instructed, we have not measured any of the Properties and have relied on areas provided by the Company.

We have assumed that the measurements and areas are correct and have been assessed and calculated in accordance with professional statement 'RICS Property Measurement, 2nd edition' (2018)' and with reference to the RICS guidance note, Code of Measuring Practice, 6th edition (2015).

Tenure

We understand that the Properties are generally of freehold, or heritable, tenure in respect of the Scottish Properties. We also understand that the Properties are free from rent charge or any other outgoings and we have assumed that there are no unusual, onerous or restrictive covenants in the title which are likely to affect the Property adversely.

A number of the Properties are, however, of leasehold or part leasehold tenure. In these cases, we have assumed that there are no unduly onerous covenants within the leases.

We have generally been provided with copies of reports on title or reports on the head leases, which were prepared on your behalf by your solicitors at the time of acquisition although for some Properties we have relied upon summary information provided by your representatives. For the purposes of our Valuation, we have relied upon the information as to tenure and the like which is set out within this Report.

Valuation Approach

We have approached our Valuation on the basis of assessing each of the Properties individually, and not as part of a portfolio, having regard to what we believe each of the Properties would achieve should it be brought to the market in isolation at the date of valuation. Our Valuation makes no allowance for the disposal of the Portfolio in its entirety as a single transaction, or as a series of smaller portfolio lots. Our Valuation additionally makes no allowance for any effect on values should all of the Properties be offered to market at the same time.

Valuation Summary

We are of the opinion that the aggregate Market Value as at the Valuation Date of the Properties subject to the existing lettings, or otherwise with vacant possession, was:

£228,445,000

(Two Hundred and Twenty-Eight Million Four Hundred and Forty-Five Thousand Pounds)

The aforementioned valuation figure represents the aggregate of the individual valuations of each Property and should not be regarded as the value of all the Properties in the context of the sale of the single lot.

There are no negative values to report.

The effective date of Company's most recent published annual or consolidated accounts was 31^st March 2024.  The equivalent figure reported by the Company as at 31^st March 2024 was 1.09% higher than the Valuation reported herein. For the purposes of paragraph 130(vi) of the FCA Technical Note, we consider that the difference between the Valuation and the equivalent figure reported in the Company's latest published annual or consolidated accounts for 31^st March 2024 to be as a result of the occupational changes, capital expenditure and market movements.

Material changes since the Valuation Date

We hereby confirm that, as at the date of this Valuation Report, there has been no material change since 30^th June 2024 in any matter relating to the Properties which, in our opinion, would have a material effect on the Market Value of such Properties. For the purposes of Rule 29.5 of the Code, we confirm that an updated valuation dated the date of this Valuation Report would not be materially different from that presented in this Valuation Report as at the Valuation Date.

We are not aware, as a result of our role as Valuers of the Properties of any matter which would materially affect the Market Value of the Properties which is not disclosed in this Valuation Report (subject to the assumptions set out in this Valuation Report) and we are not aware of any matter in relation to this Valuation Report that we believe should be and has not yet been brought to the attention of the Addressees.

Reliance, Confidentiality and Disclosure and Consent

This Valuation Report has been prepared for inclusion in the Prospectus at the Company's request.

Colliers International Property Consultants Limited has given and not withdrawn its consent to the inclusion of this Valuation Report in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus published by the Company and/or the Offeree in the form and context in which it is included. Colliers International Property Consultants Limited has given and not withdrawn its consent to the inclusion of its name and references to it in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus published by the Company and/or the Offeree in the form and context in which they appear.

Colliers International Property Consultants Limited consents to the inclusion of the Valuation and this Valuation Report and any extracts or references thereto in the Prospectus and the reference to our name in the form and context in which they are included in the Prospectus.

Colliers International Property Consultants Limited has given and not withdrawn its consent to the inclusion of this Valuation Report in any further announcement(s) to be published or made available by the Company or the Offeree (as applicable) relating to the Transaction and/or the Capital Raising and Admission, and to the references to this Valuation Report and Colliers International Property Consultants Limited in the form and context in which they appear.

This Report and Valuation is addressed to the Addressees for the Purpose and is for the use of and may be relied upon by the Addressees and shareholders of the Company and of the Offeree for the Purpose. Save in respect of the Addressees, shareholders of the Company and of the Offeree: and any responsibility arising under the Code to any person as and to the extent there be provided , to the fullest extent permitted by applicable law and regulation (including, without limitation, the Listing Rules and the Prospectus Regulation Rules), we do not assume any responsibility and will not accept any liability to any third party for any loss suffered by any such third party as a result of, or arising out of, or in accordance with this Report and the Valuation.

Nothing in this Valuation Report shall exclude or limit our liability in respect of fraud or for death or personal injury caused by our negligence or negligence of those for whom we are responsible, or for any other liability to the extent that such liability may not be excluded or limited as a matter of applicable law.

Notwithstanding the foregoing, in accordance with the Engagement and for the purposes of the Code and Prospectus Regulation Rule 5.3.2(R)(2)(f), we are responsible for this Valuation Report and accept responsibility for the information contained in this Valuation Report and confirm that, to the best of our knowledge (having taken all reasonable care to ensure this is the case) the information contained in the Valuation Report is in accordance with the facts and makes no omissions likely to affect its import.

This Valuation Report complies with, and is prepared in accordance with, and on the basis of, Rule 29 of the Code and we understand that the publication or reproduction by the Offeror or the Offeree of this Valuation Report and/or the information contained herein as required by Rules 26 and 29 of the Code is necessary, including in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and any Code Document.

This Valuation Report complies with, and is prepared in accordance with, (i) the Prospectus Regulation Rules issued by the FCA, particularly Prospectus Regulation Rule 5.4.5G; (ii) section III.1. Property Companies within the guidance set out in the FCA's Primary Market Technical Note 619.1; and (iii) the requirements of the Listing Rules of the FCA for a property valuation report.

Except for any responsibility arising under the Code and Prospectus Regulation Rule 5.3.2R(2)(f) to any person as and to the extent provided under the Code and  Prospectus Regulation Rules, to the fullest extent permitted by law we do not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in accordance with the Valuation Report or our statement set out above required by and given solely for the purposes of complying with the Code and Annex 3, item 1.2 of the UK version of Commission Delegated Regulation (EU) 2019/980.

For the avoidance of doubt, this Report and Valuation is provided by Colliers International Property Consultants Limited and no partner, member or employee assumes any personal responsibility for it nor shall owe a duty of care in respect of it.

Yours faithfully,

R D Barrett BSc MRICS Director RICS Registered Valuer For Colliers International Property Consultants Limited	S Duncan FRICS MRTPI Director RICS Registered Valuer For Colliers International Property Consultants Limited

 Appendix 1:

General Assumptions and Definitions

Unless otherwise instructed, our valuations are carried out in accordance with the following assumptions, conditions and definitions.  These form an integral part of our appointment.

Our Report and Valuation is provided in accordance with the current edition of the RICS Valuation - Global Standards (Incorporating the IVSC International Valuation Standards) prepared by the Royal Institution of Chartered Surveyors (the "Red Book"), and with any agreed instructions.  Any opinions of value are valid only at the valuation date and may not be achievable in the event of a future disposal or default, when both market conditions and the sale circumstances may be different.

Within the Report and Valuation, we make assumptions in relation to facts, conditions or situations that form part of the valuation We assume that all information provided by the addressee of the report, any borrower or third party (as appropriate) in respect of the property is complete and correct.   We assume that details of all matters relevant to value, such as prospective lettings, rent reviews, legislation and planning decisions, have been made available to us, and that such information is up to date.  In the event that any of these assumptions prove to be incorrect then we reserve the right to review our opinion(s) of value. 

Valuation Definitions:

Market Value is defined in IVS 104 paragraph 30.1 as:

'The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion'.

The interpretative commentary on Market Value, within the International Valuation Standards (IVS), has been applied. 

Valuations produced for capital gains tax, inheritance tax and Stamp Duty Land Tax / Land and Buildings Transaction Tax purposes will be based on the statutory definitions, which are written in similar terms and broadly define Market Value as:

'The price which the property might reasonably be expected to fetch if sold in the open market at that time, but that price must not be assumed to be reduced on the grounds that the whole property is to be placed on the market at one and the same time.'

Market Rent is defined in IVS 104 paragraph 40.1 as:

'The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.'

The appropriate lease terms will normally reflect current practice in the market in which the property is situated, although for certain purposes unusual terms may need to be stipulated.  Unless stated otherwise within the report, our valuations have been based upon the assumption that the rent is to be assessed upon the premises as existing at the date of our inspection. 

Investment Value or 'Worth', is defined in IVS 104 paragraph 60.1 as:

'the value of an asset to a particular owner or prospective owner for individual investment or operational objectives.'.

This is an entity-specific basis of value and reflects the circumstances and financial objectives of the entity for which the valuation is being produced.  Investment value reflects the benefits received by an entity from holding the asset and does not necessarily involve a hypothetical exchange. 

Fair Value is defined according to one of the definitions below, as applicable to the instructions.

Fair Value - International Accounting Standards Board (IASB) in IFRS 13.

'The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date'.

Fair Value - UK Generally Accepted Accounting Principles (UK GAAP) adopts the FRS 102 definition:

"The amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm's length transaction."

Existing Use Value is defined in UKVS 1.3 of the Red Book:

'The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing wherein the parties had acted knowledgeably, prudently and without compulsion, assuming that the buyer is granted vacant possession of all parts of the asset required by the business and disregarding potential alternative uses and any other characteristics of the asset that would cause its Market Value to differ from that needed to replace the remaining service potential at least cost.'

Special Assumptions

Where we are instructed to undertake valuations subject to a Special Assumption, these usually require certain assumptions to be made about a potential alternative use or status of the property.  This is a hypothetical scenario that we consider realistic, relevant and valid as at the valuation date, but which may not necessarily be deliverable at a future date.

Reinstatement / Replacement Cost Assessment And Insurance

If we provide a reinstatement cost assessment, we do not undertake a detailed cost appraisal and the figure is provided for guidance purposes only.  It is not a valuation in accordance with the Red Book and is provided without liability.  It must not be relied upon as the basis from which to obtain building insurance.

In arriving at our valuation we assume that the building is capable of being insured by reputable insurers at reasonable market rates.  If, for any reason, insurance would be difficult to obtain or would be subject to an abnormally high premium, it may have an effect on costs.

Purchase and Sale Costs, SDLT, LBTT and Taxation

No allowance is made for legal fees or any other costs or expenses which would be incurred on the sale of the property.  However, where appropriate, and in accordance with market practice for the asset type, we make deductions to reflect purchasers' acquisition costs. Trade-related properties are usually valued without deducting the costs of purchase.  Where appropriate, purchasers' costs are calculated based on professional fees inclusive of VAT, together with the appropriate level of Stamp Duty Land Tax (SDLT) / Land and Buildings Transaction Tax (LBTT) / Land Transaction Tax (LTT). 

Whilst we have regard to the general effects of taxation on market value, we do not take into account any liability for tax that may arise on a disposal, whether actual or notional, neither do we make any deduction for Capital Gains Tax, VAT or any other tax.  We make no allowance for receipt or repayment of any grants or other funding.

Plans, Floor Areas and Measurements

Where a site plan is provided, this is for indicative purposes only and should not be relied upon.  Site areas are obtained from third party sources, including electronic databases, and we are unable to warrant their accuracy. Our assumptions as to site boundaries / demise should be verified by your legal advisers.  If any questions of doubt arise the matter should be raised with us so that we may review our valuation. 

We obtain floor areas in accordance with our instructions.  This may comprise one or more of the following approaches (i) we measure the floor areas during the property inspection (ii) we calculate floor areas from plans provided to us, supported by check measurements on site where possible, (iii) we rely upon floor areas provided.  Under approaches (ii) and (iii), we wholly rely upon the information provided, and assume that the areas have been calculated in accordance with market standards.  We are unable to provide any warranties as to accuracy. 

Measurement is in accordance with the current edition of RICS Property Measurement.  If we are instructed not to adopt International Property Measurement Standards (IPMS), measurements are provided in accordance with the latest version of the Code of Measuring Practice.  We adopt the appropriate floor area basis for our valuation analysis to reflect the analysis of floor areas in the comparable transactions. Where the basis of analysis of a comparable is uncertain, we adopt a default assumption for that asset type.

Although every reasonable care is taken to ensure the accuracy of the surveys there may be occasions when due to tenant's fittings, or due to restricted access, professional estimations are required.  We recommend that where possible, we are provided with scaled floor plans in order to cross-reference the measurements.  In the event that a specialist measuring exercise is undertaken for the property, we recommend that a copy is forwarded to us in order that we may comment on whether there may be an impact on the reported value.

Floor areas set out in our report are provided for the purpose described in the Report and Valuation and are not to be used or relied upon for any other purpose.

Condition, Structure and Services, Harmful / Deleterious Materials, Health & Safety Legislation and EPCs

Our Report and Valuation takes account of the general condition of the property as observed from the valuation inspection, and is subject to access.  Where we have noticed items of disrepair during the course of our inspections, they are reflected in our valuations, unless otherwise stated.

We do not undertake any form of technical, building or deleterious material survey and it is a condition of our appointment that we will in no way review, or give warranties as to, the condition of the structure, foundations, soil and services.  Unless we are supplied with evidence to the contrary, we assume that the property is fully in compliance with building regulations and is fully insurable.  We assume it is free from any rot, infestation, adverse toxic chemical treatments, and structural or design defects.  We assume that none of the materials commonly considered deleterious or harmful are included within the property, such as, inter alia, asbestos, high alumina cement concrete, reinforced autoclaved aerated concrete (RAAC), calcium chloride as a drying agent, wood wool slabs as permanent shuttering, aluminium composite cladding material, polystyrene and polyurethane cladding insulation. 

In the event that asbestos is identified in a property, we do not carry out an asbestos inspection, nor are we able to pass comment on the adequacy of any asbestos registers or management plans.  Where relevant, we assume that the property is being managed in full compliance with the Control of Asbestos Regulations 2012 and relevant HSE regulations, and that there is no requirement for immediate expenditure, nor any risk to health. 

We do not test any services, drainage or service installations.  We assume that all services, including gas, water, electricity and sewerage, are provided and are functioning satisfactorily.

We assume that the property has an economic life span similar to comparable properties in the market, subject to regular maintenance and repairs in accordance with appropriate asset management strategies.

We comment on the findings of Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs) if they are made available to us but may be unable to quantify any impact on value.  If we are not provided with an EPC, we assume that if one was available, its rating would not have had a detrimental impact upon our opinion value or marketability.

Our valuations do not take account of any rights, obligations or liabilities, whether prospective or accrued, under the Defective Premises Act, 1972.  Unless advised to the contrary, we assume that the properties comply with, and will continue to comply with, the current Health & Safety and Disability legislation.

We do not test any alarms or installations and assume that the property complies with, and will continue to comply with, fire regulations and the Smoke and Carbon Monoxide Alarm (England) Regulations 2015 legislation.

Where a specialist condition or structural survey is provided to us, we reflect the contents of the report in our valuation to the extent that we are able to as valuation surveyors, and our assumptions should be verified by the originating consultant.  Should any issues subsequently be identified, we reserve the right to review our opinion of value.

Ground Conditions, Environmental Matters, Constraints and Flooding

We are not chartered environmental surveyors and we will not provide a formal environmental assessment.  Our investigations are therefore limited to observations of fact, obtained from third party sources, such as local authorities, the Environment Agency and professional reports that may be commissioned for the valuation.

We do not carry out any soil, geological or other tests or surveys in order to ascertain the site conditions or other environmental conditions of the property. Unless stated to the contrary within the report, our valuation assumes that there are no unusual features that may be harmful to people or property, or that would inhibit the actual or assumed use or development of the property. This includes, inter alia: ground conditions and load bearing qualities, subterranean structures or services, contamination, pollutants, mining activity, sink holes, archaeological remains, radon gas, electromagnetic fields and power lines, invasive plants and protected species.

We do not undertake any investigations into flooding, other than is available from public sources or professional reports provided to us.  Our findings are outlined in the report for information only, without reliance or warranty.  We assume in our valuation that appropriate insurance is in place and may be renewed to any owner of the property by reputable insurers at reasonable market rates.  If, for any reason, insurance would be difficult to obtain or would be subject to an abnormally high premium, it may have an effect on value.

Should our enquiries or any reports indicate the existence of environmental issues or other matters as described above, we expect them to contain appropriate actions and costings to address the issue.  We rely on this information and use it as an assumption in our valuation.  If such information is not available, we may not be able to provide an opinion of value.

We assume that the information and opinions we are given in order to prepare our valuation are complete and correct and that further investigations would not reveal more information sufficient to affect value.  However, a purchaser in the market may undertake further investigations, and if these were unexpectedly to reveal issues, then this might reduce the values reported.  We recommend that appropriately qualified and experienced specialists are instructed to review our report and revert to us if our assumptions are incorrect.

Plant And Machinery, Fixtures and Fittings

We disregard the value of all process related plant, machinery, fixtures and fittings, and those items which are in the nature of occupiers' trade fittings and equipment. We have regard to landlords' fixtures such as lifts, escalators, central heating and air conditioning forming an integral part of the buildings.

Where properties are valued as an operational entity and includes the fixtures and fittings, it is assumed that these are not subject to any hire purchase or lease agreements or any other claim on title. 

No equipment or fixtures and fittings are tested in respect of Electrical Equipment Regulations and Gas Safety Regulations and we assume that where appropriate all such equipment meets the necessary legislation. Unless otherwise specifically mentioned the valuation excludes any value attributable to plant and machinery.

Operational Entities

Where the properties are valued as an operational entity and reference is made to the trading history or trading potential of the property, we place reliance on information supplied to us. Should this information subsequently prove to be inaccurate or unreliable, the valuations reported could be adversely affected. Our valuations do not make any allowance for goodwill.

Title, Tenure, Occupational Agreements and Covenants

Unless otherwise stated, we do not inspect the Land Registry records, title deeds, leases or related legal documents and, unless otherwise disclosed to us, we assume good and marketable title that is free from onerous or restrictive covenants, rights of way and easements, and any other encumbrances or outgoings that may affect value.  We disregard any mortgages (including regulated mortgages), debentures or other charges to which the property may be subject. 

We assume that any ground rents, service charges other contributions are fair and proportionate, and are not subject to onerous increases or reviews.

Where we have not been supplied with leases, unless we have been advised to the contrary, we assume that all the leases are on a full repairing and insuring basis and that all rents are reviewed in an upwards direction only, at the intervals notified to us, to market rent.  We assume that no questions of doubt arise as to the interpretation of the provisions within the leases giving effect to the rent reviews.  We assume that wherever rent reviews or lease renewals are pending, all notices have been served validly within the appropriate time limits, and they will be settled according to the assumptions we set out within the reports. 

Unless informed otherwise, we assume that all rents and other payments payable by virtue of the leases have been paid to date and there are no arrears of rent, service charge or other breaches in the obligations of occupation.

In the case of property that is let, our opinion of value is based on our assessment of the investment market's perception of the covenant strength of the occupier(s).  This is arrived at in our capacity as valuation surveyors on the basis of information that is publicly available. We are not accountants or credit experts and we do not undertake a detailed investigation into the financial status of the tenants.  Our valuations reflect the type of tenants actually in occupation or responsible for meeting lease commitments, or likely to be in occupation, and the market's general perception of their creditworthiness.  We provide no warranties as to covenant strength and recommend that you make your own detailed enquiries if your conclusions differ from our own.

Where we are provided with a report on title and/or occupational agreement, we form our opinion of value reflecting our interpretation of that title.  Your legal advisers should review our understanding of the title and confirm that this is correct.

Planning, Licensing, Rating and Statutory Enquiries

We undertake online planning enquiries to the extent that we consider reasonable and appropriate to the valuation.  We do not make formal verbal or written enquiries to local authorities.  If a professional planning report is provided to us, we will take the findings into account in our valuation but will not be accountable for the advice provided within it, nor any errors of interpretation or fact within the third party report.

We assume that the property is constructed, used and occupied in full compliance with the relevant planning and building regulation approvals and that there are no outstanding notices, conditions, breaches, contraventions, non-compliance, appeals, challenges or judicial review.  We assume that all consents, licenses and permissions are in place, that there are no outstanding works or conditions required by lessors or statutory, local or other competent authorities, and that no adverse planning conditions or restrictions apply.  If we are instructed to value property on the Special Assumption of having the benefit of a defined planning permission or license, we assume that it will not be appealed or challenged at any point prior to, or following, implementation.

Our investigations are limited to identifying material planning applications on the property and observable constraints.  We seek to identify any proposals in the immediate vicinity that may have an impact on the property, such as highway proposals, comprehensive development schemes and other planning matters. 

We seek to obtain rateable values and council tax banding from the statutory databases, where available.  The 2023 rating revaluation has resulted in some increases in rateable values in specific sectors.  This may have an impact on the marketability and value of a property, and on vacancy rates or landlord non recoverable costs.  However, unless there is evidence to the contrary, we will make the express assumption that any changes are affordable to occupiers, or will be subject to appropriate transitional relief. We do not reflect the impact of any rating appeals in our valuations unless they are formally concluded. 

Given that statutory information is obtained from third party sources, we are unable to provide any warranty or reliance as to its accuracy.  Your legal advisers should verify our assumptions and revert to us if required.

Valuations Assuming Development, Refurbishment or Repositioning

Unless specifically instructed to the contrary, where we are provided with development costs and construction schedules by the addressee, a borrower or an independent quantity surveyor, we rely on this information as an assumption in arriving at our opinion of value.  It forms an assumption within our valuation and we accept no liability if the actual costs or programme differ from those assumed at the valuation date. 

We are not quantity surveyors and provide no reliance as to construction costs or timescale.  Irrespective of the source of this information, a professional quantity surveyor should review our assumptions and revert to us if there are any issues of doubt, so that we may review our opinion of value. 

We additionally assume that a hypothetical market purchaser will have the necessary resources, skills and experience to deliver the proposed development.  It is not within our scope to assess the credentials of any actual purchaser, owner or developer of the property that is subject to our valuation.  We accept no liability for any circumstances where a development or refurbishment does not achieve our concluded values.

If a property is in the course of development, our valuation assumes that the interest will be readily assignable to a market purchaser with all contractor and professional team warranties in place.  Where an opinion of the completed development value is required, we assume that all works are completed in accordance with appropriate statutory and industry standards and are institutionally acceptable.

Alternative Investment Funds

In the event that our appointment is from an entity to which the European Parliament and Council Directive 2011/61/EU ('the AIFMD'), which relates to Alternative Investment Fund Managers ('AIFM'), applies, our instructions are solely limited to providing recommendations on the value of particular property assets (subject to the assumptions set out in our valuation report) and we are therefore not determining the net asset value of either the Fund or the individual properties within the Fund.  Accordingly, we are not acting as an 'external valuer' (as defined under the AIFMD) but are providing our service in the capacity of a 'valuation advisor' to the AIFM.

Interpretation and Comprehension of The Report and Valuation

Real estate is a complex asset class that carries risk.  Any addressee to whom we have permitted reliance on our Report and Valuation should have sufficient understanding to fully review and comprehend its contents and conclusions.  We strongly recommend that any queries are raised with us within a reasonable period of receiving our Report and Valuation, so that we may satisfactorily address them.

Appendix 2: 

 

Property Address
4 London Mall, 1 Station Mall, Basingstoke
Bexleyheath Shopping Centre, Bexleyheath
Broadway Square, Bexleyheath
Sovereign Centre, Boscombe
The Promenades, Bridlington
Capitol Shopping Centre, Cardiff
Merlin's Walk, Carmarthen
14/17 Frenchgate, Doncaster
Freshney Place Shopping Centre, Grimsby
39 The Broadwalk, Harlow
Unit 47, 5 Trinity Square, Hereford
Burns Mall, Kilmarnock
Newkirkgate Shopping Centre, Leith
The Deeping Centre, Market Deeping
The Hill Street Centre,  Middlesbrough
Gloucester Green, Oxford
The Paisley Centre, Paisley
The Hildreds Shopping Centre, Skegness
Three Horseshoes Shopping Centre, Warminster
The Horsefair Shopping Centre, Wisbech
Newlands Shopping Centre, Witham

Part C - Knight Frank Valuation Report (Capital & Regional Portfolio)

Valuation Report NewRiver REIT plc Valuation date:         30 June 2024

Important Notice to all readers of this report Unless you are the Client named within this report, or have been explicitly identified by us as a party to whom we owe a responsibility, a duty of care and who is entitled to rely on this report, Knight Frank LLP does not owe or assume any duty of care to you in respect of the contents of this report and you are not entitled to rely upon it.

NewRiver REIT plc 89 Whitfield Street London W1T 4DE (hereinafter referred to as the "Client" and the "Offeror") Jefferies International Limited (acting as lead financial adviser and joint corporate broker to the Client) 100 Bishopsgate London EC2N 4JL (hereinafter referred to as the "Offeror Financial Adviser") Panmure Liberum Limited (acting as sole sponsor and joint corporate broker to the Client) Ropemaker Place Level 12 25 Ropemaker Street London EC2Y 9LY (hereinafter referred to as the "Offeror Sponsor") Kinmont Limited (acting as joint financial adviser to the Client) 5 Clifford Street London W1S 2LG Shore Capital Stockbrokers Limited (acting as joint corporate broker to the Client) Cassini House 57 St James's Street London SW1A 1LD (together, hereinafter referred to as the "Offeror Addressees") Capital & Regional plc Strand Bridge House 138-142 Strand London WC2R 1HH (hereinafter referred to the "Offeree") Numis Securities Limited (trading as Deutsche Numis) (acting as joint financial adviser and joint corporate broker to Offeree) 45 Gresham Street London EC2V 7BF Stifel Nicolaus Europe Limited (acting as joint financial adviser and joint corporate broker to Offeree) 4th Floor 150 Cheapside London EC2V 6ET (together, hereinafter referred to as the "Offeree Joint Financial Advisers") (each an "Addressee" and together the "Addressees")

Click or tap here to enter text.

Our Ref: 1148765

Date of issue: 18 September 2024

Dear Sir/Madam

Valuation Report in respect of the properties of Capital & Regional plc as at 30 June 2024 for inclusion in a Rule 2.4 Announcement, Rule 2.7 Announcement, Scheme Document and Prospectus ("Valuation Report")

Further to your instructions, we are pleased to provide our Valuation Report in respect of the freehold, heritable or leasehold interests in the properties ("Properties") set out in Appendix 1 (Schedule of Properties) below in connection with inclusion in a Rule 2.4 Announcement, Rule 2.7 Announcement, Scheme Document to be published by the Offeree and a Prospectus to be published by the Offeror, in connection with a possible acquisition of the entire issued, and to be issued, share capital of the Offeree by the Offeror (the "Transaction").

Knight Frank 55 Baker Street, London, W1U 8AN [phone] knightfrank.co.uk Knight Frank is the trading name of Knight Frank LLP. Knight Frank LLP is a limited liability partnership registered in England and Wales with registered number OC305934. Our registered office is at 55 Baker Street, London W1U 8AN where you may look at a list of members' names. If we use the term 'partner' when referring to one of our representatives, that person will either be a member, employee, worker or consultant of Knight Frank LLP and not a partner in a partnership.

Signed for and on behalf of Knight Frank LLP

Signature. Ben Nicholson MRICS RICS Registered Valuer Partner, Valuation & Advisory [e-mail] T              [phone] M             [phone]

1.   About this report

Engagement of Knight Frank LLP

1.1          This Valuation Report sets out our valuation, as at 30 June 2024 ("Valuation Date"), of the Properties ("Valuation"). This Valuation Report has been prepared in accordance with our Terms of Engagement letter dated 13 September 2024 addressed to the Addressees, and our General Terms of Business for Valuation Services (together the "Agreement").

Client

1.2          We have been instructed to prepare this Valuation Report by NewRiver REIT plc. However as set out above, this Valuation Report has also been addressed to other Addressees.

Valuation standards

1.3          The Valuation has been undertaken in accordance with and complies with: (a) the current editions of RICS Valuation - Global Standards, which incorporate the International Valuation Standards, and the RICS UK National Supplement. References to the "Red Book" refer to either or both of these documents, as applicable; (b) Rule 29 of the City Code on Takeovers and Mergers (the "Code") as issued by the UK Panel on Takeovers and Mergers; (c) paragraphs 128-130 of the Financial Conduct Authority ("FCA") Primary Market Technical Note 619.1 (the "FCA Technical Note"); and (d) Rules 5.4.5 and 5.4.6 of the UK Prospectus Regulation Rules published by the FCA. This Valuation Report is an unqualified valuation report prepared in accordance with the requirements of Rule 29 of the Code by a valuer who has had access to sufficient information to prepare it.

1.4          The Properties have been valued by a valuer who is qualified for the purposes of the Valuation in accordance with Rule 29 of the Code. For the purposes of this Valuation Report, "UK Prospectus Regulation Rules" shall mean the prospectus regulation rules made by the FCA for the purposes of part 6 of the Financial Services and Markets Act 2000, as amended.

Status and experience of valuer

Valuer and expertise

1.5      The valuer, on behalf of Knight Frank LLP, with the responsibility for this Valuation Report is Ben Nicholson MRICS, RICS Registered Valuer ("Responsible Valuer").  Parts of the Valuation have been undertaken by additional valuers as listed on our file.

1.6          We confirm that the Responsible Valuer and any additional valuers who value the Properties meet the requirements of the Red Book and Rule 29.3(a)(iii) of the Code in having sufficient current knowledge of the particular market and the skills and understanding to undertake the Valuation and prepare this Valuation Report competently and are appropriately qualified for the purposes of the Valuation as required by Rule 29.3(a)(ii) of the Code and are independent of the parties to the offer as required by Rule 29.3(a)(i) of the Code.

1.7         We confirm that we are not aware of any reason why we would not satisfy the requirements of Rule 29.3(a)(i) of the Code.

Conflicts of Interest:  Declaration and Disclosures

1.8          We confirm that the Responsible Valuer and additional valuers meet the requirements of the Red Book, having sufficient current knowledge of the particular market and the skills and understanding to undertake the Valuation competently.

1.9          We confirm that we have no material interest in the Client and we are acting as an External Valuer in valuing the Properties for the Purpose (as that term is defined below).

1.10        This Valuation Report has been vetted as part of Knight Frank LLP's quality assurance procedures.

1.11        We recognise and support the RICS Rules of Conduct and have procedures for identifying conflicts of interest.

Independence

1.12        Knight Frank LLP currently values a number of freehold, heritable and/or leasehold interests of the Client (which for the avoidance of doubt does not include the Properties), for financial reporting purposes, on behalf of the Client. The total fees for this assignment, earned by Knight Frank LLP (or other companies forming part of the same group of companies within the UK) from the Client (or other companies within the UK) is less than 5.0% of the total UK revenues. It is not anticipated that there will be a material increase in the proportion of the fees payable, or likely to be payable, by the Client.  

1.13        Other than these valuation services, Knight Frank LLP has no current material involvement with the assets being valued and we confirm that we can report without any material conflict.

Use of this Valuation

Purpose of valuation

1.14        The Valuation and this Valuation Report are each provided solely for the purpose of:

(A)      inclusion in an announcement proposed to be made by the Offeror pursuant to Rule 2.4 of the Code in connection with the Transaction (the "Rule 2.4 Announcement");

(B)     inclusion in an announcement proposed to be made by the Offeror and the Offeree pursuant to Rule 2.7 of the Code in connection with the Transaction (the "Rule 2.7 Announcement");

(C)       inclusion in a scheme circular to be published by the Offeree in connection with the Transaction (the "Scheme Document");

(D)     inclusion in a prospectus to be published by the Offeror in connection with the Transaction and the issue and allotment of new shares in the capital of the Offeror pursuant, amongst other things, to the terms of the Transaction (the "Prospectus");

(E)     inclusion and/or reference to it in any other announcements, documents and/or supplementary documents required to be released by the Offeror and/or the Offeree pursuant to the Code and which directly relate to the Transaction (each a "Code Document"); and

(F)      publication on the Offeror's website and the Offeree's website in accordance with the requirements of Rule 26.3 of the Code and the UK Prospectus Regulation Rules,

(together, the "Purpose").

Reliance

1.15        This Valuation Report has been prepared for the Addressees only and is for the use of, and may be relied upon by, the Addressees for the Purpose. Notwithstanding the General Terms, we acknowledge that this Valuation Report will also be for the use of the shareholders of the Offeror and the Offeree for the Purpose set out above.

1.16        Save for: (a) the Addressees; and (b) any responsibility arising under the Code and/or the UK Prospectus Regulation Rules to any person as and to the extent there provided, in accordance with Clauses 3 & 4 of the General Terms and to the fullest extent permitted by law, we do not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in accordance with this Valuation Report or our statement, required by and given solely for the purposes of complying with the UK Prospectus Regulation Rules and Rule 29 of the Code.

Disclosure & publication

1.17        The Valuation has been prepared for the Client and in accordance with the Agreement which governs its purpose and use. As stated in the Agreement, this Valuation Report is confidential to the Addressees and must not be disclosed to any person other than for the Purpose without our express written consent. Other than for the Purpose, neither the whole, nor any part of this Valuation Report nor any reference thereto may be included in any prospectus, listing particulars, published document, circular or statement nor published in any way without our prior written approval of the form or context in which it may appear.

1.18        Notwithstanding paragraph ‎1.17 above, this Valuation Report may be disclosed as set out below:

Subject to the terms and conditions (but disregarding for these purposes clauses 4.3 to 4.6 (inclusive) of the General Terms) of the Agreement and our approval of the form and context thereof, we hereby confirm that we will authorise and consent to the disclosure of this Valuation Report:

i.          as may be required by any applicable court of competent jurisdiction or other competent judicial or governmental body or any applicable law or regulation or pursuant to government action, regulatory requirement or request;

ii.         to each Addressee's affiliates and each Addressee's affiliates' respective directors, officers, employees, agents, professional advisers, insurers, auditors and bankers that need to see the Valuation in connection with the Purpose;

iii.         in the case of the Offeror Addressees, in seeking to establish a defence or otherwise in connection with any actual or threatened legal or regulatory proceedings or investigation relating to the matters set out in this Letter or claims that may be brought against them arising from their roles as financial adviser, sponsor and/or joint corporate broker (as applicable) to the Offeror;

iv.        in the case of the Offeree Joint Financial Advisers, in seeking to establish a defence or otherwise in connection with any actual or threatened legal or regulatory proceedings or investigation relating to the matters set out in this Letter or claims that may be brought against them arising from their roles as joint financial adviser and/or joint corporate broker (as applicable) to the Offeree;

v.         in investor presentations and other investor education materials prepared in connection with the Transaction, and in any private discussions with Investors or other third parties in connection with the Transaction;

vi.        for the Purpose; and/or

vii.        to any Addressee's insurers in respect of any claim or potential claim relating to the Transaction, but in each case only on the basis that: (a) such disclosure is made to inform the recipient that Knight Frank have no duty of care and therefore shall have no liability to the recipient in respect of the relevant document; and (b) such recipient agrees not to provide a copy of the document to any other person without the prior written consent of Knight Frank.

1.19        It is a condition of such disclosure that each party in receipt of this Valuation Report that is not an Addressee agrees and acknowledges that this Valuation Report cannot be relied upon by them, and we do not accept any responsibility, duty of care or liability to them, whether in contract, tort (including negligence), misrepresentation or otherwise in respect of the Valuation and the information it contains.  For the avoidance of doubt, nothing in the preceding sentence shall affect our responsibility, for the purposes of Rule 5.3.2R(2)(f) of the UK Prospectus Regulation Rules, or under paragraphs 1.15 and 1.16 of this Valuation Report for the information contained in this Valuation Report.

1.20        This Valuation Report complies with Rule 29 of the Code and we understand that the publication or reproduction by the Offeror or Offeree of this Valuation Report and/or the information contained herein as required by Rules 26 and 29 of the Code is necessary, including in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and any Code Document.

1.21        We confirm that this Valuation Report complies with Rules 5.4.5G and 5.4.6G of the UK Prospectus Regulation Rules and paragraphs 128 to 130 of the FCA Technical Note.

1.22        We confirm that the information contained in the Prospectus which is extracted from this Valuation Report is accurate, balanced and complete and is not misleading or inconsistent with this Valuation Report as prepared by us and has been properly extracted, derived or computed from this Valuation Report.

1.23        The Addressees agree and acknowledge that we shall have no liability for any error, omission or inaccuracy in this Valuation Report to the extent resulting from our reliance on information provided by or on behalf of the Client unless otherwise stated. Notwithstanding the above, we highlight the restricted nature of this instruction, in accordance with the Red Book; as a result the reliance that can be placed on the Valuation is limited.

Verification

1.24        We recommend that before any financial transaction is entered into based upon the Valuation, you obtain verification of any third-party information contained within this Valuation Report.

1.25        We would advise you that whilst we have valued the Properties reflecting current market conditions, there are certain risks which may be, or may become, uninsurable. Before undertaking any financial transaction based upon this Valuation, you should satisfy yourselves as to the current insurance cover and the risks that may be involved should an uninsured loss occur.

Limitations on liability

1.26        Knight Frank LLP's total liability for any direct loss or damage (whether caused by negligence or breach of contract or otherwise) arising out of or in connection with this Valuation is limited in accordance with the terms of the Agreement. Knight Frank LLP accepts no liability for any indirect or consequential loss or for loss of profits.

1.27        We confirm that we hold adequate and appropriate PII cover for this instruction.

1.28        No claim arising out of or in connection with this Valuation may be brought against any member, employee, partner or consultant of Knight Frank LLP.  Those individuals will not have a personal duty of care to any party and any claim for losses must be brought against Knight Frank LLP.

1.29        Nothing in this Valuation shall exclude or limit our liability in respect of fraud or for death or personal injury caused by our negligence or for any other liability to the extent that such liability may not be excluded or limited as a matter of law or regulation.

Scope of work

General Scope of Valuation Work

1.30        The Valuation has been undertaken, and this Valuation Report prepared, in accordance with the General Scope of Valuation Work appended to this Valuation Report at Appendix 2.

Information to be relied upon

1.31        We have relied upon the information previously provided to us by the Offeror, or by third parties in respect of the 30 June 2024 Valuation and will assume it to be correct for the purposes of the Valuation unless you inform us otherwise, subject only to any valuation that we have agreed to undertake.

1.32        Where we express an opinion in respect of (or which depends upon) legal issues, any such opinion must be verified by your legal advisors before any Valuation can be relied upon. 

1.33        We are instructed to rely on floor areas and tenancy information provided by the Client. We have not read lease agreements nor verified accordance between tenancy schedule and lease terms.

1.34        Knight Frank LLP cannot be held liable as regards the legal description of the Properties, its use, non-compliance with statutory requirements, technological and natural risks, the areas taken into account, the existence of concealed defects, presence of asbestos, adverse ground condition, presence of soil contamination, presence of insects, noxious animals or plants, rot, or deleterious materials, etc. This Valuation Report comments on the above on the basis of Technical or Environmental reports, if provided.

Inspections

1.35        In undertaking the Valuation we have carried out an inspection of the Properties internally and externally. Our inspections of all the Properties have been undertaken within the last six months.

Information Provided

1.36        In this Valuation Report we have been provided with information by the Client, its advisors and other third parties. We have relied upon this information as being materially correct in all aspects.

1.37        In the absence of any documents or information provided, we have had to rely solely upon our own enquiries as outlined in this Valuation Report.

1.38        We have assumed there to be good and marketable titles to the Properties. We have made oral enquiries with the Client where appropriate and have taken account, insofar as we are aware, of unusual outgoings, planning proposals and onerous restrictions or local authority intentions which affect the Properties. However, this information has been provided to us on the basis that it should not be relied upon.

1.39        We have been supplied with details of tenure and tenancies and have valued on the basis that there are no undisclosed matters which would affect our valuation.

1.40        We have not undertaken any building surveys or environmental audits and are therefore unable to report that the Properties are free of any structural fault, rot, infestation or defects of any other nature, including inherent weaknesses due to the use in construction of materials now suspect. No tests were carried out on any of the technical services. However, we have reflected any apparent wants of repair in our opinion of value as appropriate.

1.41        The Properties have been valued individually, not as part of a portfolio.

Assumptions

1.42        We have assumed, except where we have been informed to the contrary, that there are no adverse ground or soil conditions or environmental contaminations which would affect the present or future use of the Properties and that the load bearing qualities of the site of each property are sufficient to support the buildings constructed or to be constructed thereon.

1.43        In respect of the long leasehold interest held in 17&Central, 42 Selborne Rd, Walthamstow, London E17 7JR, we understand that the developer of the residential premises over part of the scheme, will be handing back 6 retail units with ancillary accommodation at first floor level to the Offeree in October 2024. We are making the assumption that all appropriate works will be completed by the developer and that the units will be handed back in shell condition in readiness for letting. 

1.44        With regard to The Mall, 159 High Rd, Wood Green, London N22 6YQ we are aware that the Offeree will be responsible for the replacement to the external cladding panels to the Travelodge hotel. We have been provided with an estimate including contingency and fees to cover such works and are making the assumption that this capital provision is sufficient to complete the replacement of the panels. We have made a capital deduction in the valuation to cover the cost of the rectification works. We are further assuming that the tenant will be able to continue to operate while such works are undertaken.

1.45        Since 30 June 2024 we are aware that Cine-UK Limited which occupy premises at The Mall, 159 High Rd, Wood Green, London N22 6YQ, have issued a letter setting out re-structuring plans, which will be considered by the Court at the convening hearing. The full implications of the proposed restructure were unknown at the valuation date and our valuation currently reflects the uncertainty of the situation.

1.46        For The Exchange, High Rd, Ilford IG1 1RS, we understand that there are key lettings with agreed terms requiring capital expenditure. On Level 1 terms have been agreed to let 30,000 sq ft and Level 3, 14,000 sq ft. We are making the assumption that the capital provisions which have been deducted from the valuation are sufficient to complete the lettings.

2.   Valuation

Methodology

2.1          The Valuation has been undertaken using appropriate valuation methodology and our professional judgement.

Comparative method

2.2          In undertaking the Valuation, we have made our assessment on the basis of a collation and analysis of appropriate comparable transactions, together with evidence of demand within the vicinity of the subject properties.  With the benefit of such transactions we have then applied these to the Properties, taking into account size, location, aspect and other material factors.

Investment method

2.3          The Valuation has been carried out using the comparative and investment methods.  In undertaking the Valuation, we have made our assessment on the basis of a collation and analysis of appropriate comparable investment and rental transactions, together with evidence of demand within the vicinity of the subject Properties. With the benefit of such transactions we have then applied these to the Properties, taking into account size, location, terms, covenant and other material factors.

Valuation bases

2.4          The basis of value for the Valuation as required by the Code is Market Value and therefore these valuations have been prepared on a Market Value basis.

Market Value

2.5          Market Value is defined within RICS Valuation - Global Standards as:

"The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion."

Portfolios

2.6          In a valuation of a property portfolio, we have valued the individual properties separately and we have assumed that the individual properties have been marketed in an orderly way.

Market Value

Market Value

2.7          We are of the opinion that the aggregate Market Value of the freehold, heritable and long leasehold interests in the Properties, subject to the existing tenancies on the assumptions highlighted above, as at the Valuation Date is:

£350,000,000 (Three Hundred and Fifty Million Pounds).

2.8          For the purposes of Rule 29.5 of the Code, we confirm that in our opinion the current valuation of the Properties as at the date of this Valuation Report would not be materially different from the valuation of the Properties as at the Valuation Date.

2.9          We are not aware of any matter which would materially affect the Market Value of the Properties which is not disclosed in this Valuation Report (subject to the assumptions set out in this Valuation Report) and we are not aware of any matter in relation to this Valuation Report that we believe should be and has not yet been brought to the attention of the Addressees.

2.10        The valuation of the Properties reported in the Offeree's latest published annual or consolidated accounts as at 30 June 2024 was undertaken by an independent third party valuer without input from us. Property valuations, and the assumptions underpinning them, are subjective and therefore differences of opinion can and do occur between valuers. While we therefore are not instructed to comment on how that independent third party valuer reached that aggregate valuation, for the purposes of paragraph 130(vi) of the FCA Technical Note, we consider the modest difference of -6.64% between the valuation figure in this Valuation Report and the equivalent figure reported in the Offeree's latest published annual or consolidated accounts to be as a result of the way in which we and that third party independent valuer have applied those subjective assumptions.

Responsibility

2.11        For the purposes of the Code, we are responsible for this Valuation Report and accept responsibility for the information contained in this Valuation Report and confirm that to the best of our knowledge (having taken all reasonable care to ensure this is the case), the information contained in this Valuation Report is in accordance with the facts and contains no omissions likely to affect its import. This Valuation Report complies with and is prepared in accordance with, and on the basis of, the Code. We authorise its contents for the purposes of Rule 29 of the Code.  Knight Frank LLP has given and has not withdrawn its consent to the inclusion of this Valuation Report in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus.

2.12        We accept responsibility (including for the purpose of Rule 5.3.2R(2)(f) of the UK Prospectus Regulation Rules) for the information contained in this Valuation Report and to the best of our knowledge, the information contained in this Valuation Report is in accordance with the facts and the Valuation Report makes no omission likely to affect its import.

Consent

2.13        Knight Frank LLP has given and has not withdrawn its consent to the inclusion of this Valuation Report in the Rule 2.4 Announcement, the Rule 2.7 Announcement, the Scheme Document and in the Prospectus  published by the Client and/or the Offeree in the form and context in which it is included.

2.14        We consent to the inclusion of the Valuation and this Valuation Report and any extracts or references thereto in the Prospectus and the reference to our name in the form and context in which they are included in the Prospectus (subject to us first approving the form and context in which our Valuation Report will appear).

Appendix 1  List of Properties

Property Address - Shopping Centres	Tenure	Occupancy	Date of Inspections
The Gyle Shopping Centre, Gyle Ave, Edinburgh EH12 9JY	Heritable	Multi Let	12/08/2024
The Marlowes Shopping Centre & Fareham House, Hemel Hempstead, Hertfordshire, HP1 1DX	Freehold	Multi Let	05/08/2024
The Exchange, High Rd, Ilford IG1 1RS	Freehold	Multi Let	15/07/2024
The Mall, Maidstone, Kent, ME15 6AT	Freehold	Multi Let	08/08/2024
17&Central, 42 Selborne Rd, Walthamstow, London E17 7JR	Long Leasehold	Multi Let	07/08/2024
The Mall, 159 High Rd, Wood Green, London N22 6YQ	Freehold	Multi Let	07/08/2024

Appendix 2 General Scope of Valuation Work

General Scope of Valuation Work

As required by the RICS Valuation - Global Standards (the "Red Book") this General Scope of Valuation Work describes information we will rely on, the investigations that we will undertake, the limits that will apply to those investigations and the assumptions we will make, unless we are provided with or find information to the contrary.

Definitions

"Assumption" is something which it is agreed the valuer can reasonably accept as being true without specific investigation or verification.

"Property"  is the interest which we are instructed to value in land including any buildings or other improvements constructed upon it.

"Valuation" shall mean any valuation report, supplementary report or subsequent/update report, produced pursuant to this engagement and any other replies or information we produce in respect of any such report and/or any relevant property.

1.      Property to be valued

1.1    We will exercise reasonable care and skill (but will not have an absolute obligation to you) to ensure that the Property, identified by the address provided in your instructions, is the Property inspected by us and included within our Valuation.  If there is ambiguity as to the Property address, or the extent of the Property to be valued, this should be drawn to our attention in your instructions or immediately upon receipt of our Valuation.

1.2    We will rely upon information provided by you or your legal advisers relating to the Property to be valued, including any tenancies, sub-tenancies or other third-party interests.  Any information on title and tenure we are provided with by a third party during the course of our investigations will be summarised in our Valuation but will be subject to verification by your legal advisers.  We will be under no obligation to make any searches of publicly available land registers.  We will not make or commission any investigations to verify any of this information.  In particular, we will not investigate or verify that :

(s)  all title information relied upon and referred to in our Valuation is complete and correct,

(t)   all documentation is satisfactorily drawn,

(u)  there are no undisclosed onerous conditions or restrictions that could impact on the marketability of the Property valued, and

(v)  there is no material litigation pending, relating to the Property valued.

1.3    Where we provide a plan of the Property in our Valuation this is for identification only.  While the plan reflects our understanding based on the information provided to us it must not be relied upon to define boundaries, title or easements.

1.4    Our Valuation will include those items of plant and machinery normally considered to be part of the service installations to a building and which would normally pass with the Property on a sale or letting.  We will exclude all other items of process plant, machinery, trade fixtures and equipment, chattels, vehicles, stock and loose tools, and any tenant's fixtures and fittings.

1.5    Unless agreed otherwise in writing we will neither investigate nor include in our Valuation any unproven or unquantified mineral deposits, felled timber, airspace or any other matter which may or may not be found to be part of the Property but which would not be known to a buyer or seller on the valuation date.

1.6    Unless agreed otherwise our Valuation will make the Assumption that all parts of the Property occupied by the current owner on the valuation date would be transferred with vacant possession and any tenancies, sub-tenancies or other third party interests existing on the valuation date will continue. 

1.7    Where requested legal title and tenancy information is not provided in full, in the absence of any information provided to the contrary, our Valuation will make the Assumption that the subject Property has good title and is free from any onerous restrictions and/or encumbrances or any such matter which would diminish its value.

2.      Portfolios

2.1    Where instructed to value a portfolio of properties, unless specifically agreed with you otherwise, we will value each Property separately on the basis that it is offered individually to the market.

3.      Building specification and condition

3.1    We will note the general condition of any building and any building defect brought to our attention and reflect this in our Valuation.  We will not undertake a detailed investigation of the materials or methods of construction or of the condition of any specific building element.  We will not test or commission a test of service installations.  Unless we become aware during our normal investigations of anything to the contrary and mention this in our Valuation, our Valuation will , make the Assumption that:

(w)  any building is in a condition commensurate with its age, use and design and is free from significant defect,

(x)  no construction materials have been used that are deleterious, or likely to give rise to structural defects,

(y)  no potentially hazardous or harmful materials are present, including asbestos,

(z)   all relevant statutory requirements relating to use, construction and fire safety have been complied with,

(aa)   any building services, together with any associated computer hardware and software, are fully operational and free from impending breakdown or malfunction and

(bb)   the supply to the building of electricity, data cable network and water, are sufficient for the stated use and occupancy.

3.2    If you require information on the structure or condition of any building our specialist building surveyors can provide a suitable report.as a separate service.

4.      Environment and sustainability

4.1    Our Valuation will reflect the market's perception of the environmental performance of the Property and any identified environmental risks as at the valuation date.  This may include reflecting information you provide to us that has been prepared by suitably qualified consultants on compliance of existing or proposed buildings with recognised sustainability metrics.  Where appropriate we will research any freely available information issued by public bodies on the energy performance of existing buildings.

4.2    We will investigate whether the Property has a current Energy Performance Certificate on the relevant government register and report  our findings.  As part of our valuation service we will not advise on the extent to which the Property complies with any other Environmental, Social or Governance (ESG) metrics or to what extent the building, structure, technical services, ground conditions, will be impacted by future climate change events, such as extreme weather, or legislation aimed at mitigating the impact of such events.  If required KF may be able to advise on ESG considerations and their long-term impact on a Property as a separate service.

5.      Ground conditions and contamination

5.1    We may rely on any information you provide to us about the findings and conclusions of any specialist investigations into ground conditions or any contamination that may affect the Property.  Otherwise our investigations will be limited to research of freely available information issued by Government Agencies and other public bodies for flood risk, recorded mining activity and radon.  We will also record any common sources or indicators of potential contamination observed during our inspection. 

5.2    Unless specifically instructed by you to do so, we will not commission specialist investigations into past or present uses either of the Property or any neighbouring property to establish whether there is contamination or potential for contamination, or any other potential environmental risk.  Neither will we be able to advise on any remedial or preventive measures.

5.3    We will comment on our findings and any other information in our possession or discovered during our investigations in our Valuation.

5.4    Unless we become aware of anything to the contrary and mention this in our Valuation, for each Property valued our Valuation will make the Assumption that:

(cc)   the site is physically capable of development or redevelopment, when appropriate, and that no extraordinary costs will be incurred in providing foundations and infrastructure,

(dd)  there are no archaeological remains on or under the land which could adversely impact on value,

(ee)   the Property is not adversely affected by any form of pollution or contamination,

(ff)  there is no abnormal risk of flooding,

(gg)  there are no high voltage overhead cables or large electrical supply equipment affecting the Property

(hh)  the Property does not have levels of radon gas that will require mitigation work, and

(ii)  there are no invasive species present at the Property or within close proximity to the Property.

(jj)  There are no protected species which could adversely affect the use of the Property.

6.      Planning and highway enquiries

6.1    We may research freely available information on planning history and relevant current policies or proposals relating to any Property being valued using the appropriate local authority website.   We will not commission a formal local search.  Our Valuation will make the Assumption that any information obtained will be correct, but our findings should not be relied on for any contractual purpose.

6.2    Unless we obtain information to the contrary, Our Valuation will make the Assumption that:

(kk)   the use to which the Property is put is lawful and that there is no pending enforcement action,

(ll)  there are no local authority proposals that might involve the use of compulsory purchase powers or otherwise directly affect the Property.

6.3    We do not undertake searches to establish whether any road or pathways providing access to the Property are publicly adopted.  Unless we receive information to the contrary or have other reason to suspect an adjoining road or other access route is not adopted, our Valuation will make the Assumption that  all such routes are publicly adopted.

7.      Other statutory and regulatory requirements

7.1    A property owner or occupier may be subject to statutory regulations depending on their use.  Depending on how a particular owner or occupier uses a building, the applicable regulations may require alterations to be made to buildings.  Our valuation service does not include identifying or otherwise advising on works that may be required by a specific user in order to comply with any regulations applicable to the current or a proposed use of the Property.  Unless it is clear that similar alterations would be required by most prospective buyers in the market for a property, our Valuation will make the Assumption that no work would be required by a prospective owner or occupier to comply with regulatory requirements relating to their intended use.

7.2    We will not investigate or comment on licences or permits that may be required by the current or any potential users of the Property relating to their use or occupation.

8.      Measurements

8.1    Where building floor areas are required for our valuation, unless we have agreed to rely on floor areas provided by you or a third party, we will take measurements and calculate the appropriate floor areas for buildings in accordance with the RICS Property Measurement Professional Standard.   These measurements will either be wholly taken by us during our inspection or from scaled drawings provided to us and checked by sample measurements on site.  The floor areas will be within a tolerance that is appropriate having regard to the circumstances and purpose of the valuation instruction.

8.2    Where required, any site areas will be calculated from our understanding of the boundaries using digital mapping technology, subject to clause 1.3 above.

9.      Investment properties

9.1    Where the Property valued is subject to a tenancy or tenancies, we will have regard to the market's likely perception of the financial status and reliability of tenants in arriving at our valuation.  We will not undertake detailed investigations into the financial standing of any tenant. Unless advised by you to the contrary our Valuation will be make the Assumption that there are no material rent arrears or breaches of other lease obligations.

10.    Development properties

10.1  If we are instructed to value Property for which development, redevelopment or substantial refurbishment is proposed or in progress, we strongly recommend that you supply us with build cost and other relevant information prepared by a suitably qualified construction cost professional, such as a quantity surveyor.  We shall be entitled to rely on such information in preparing our valuation.  If a professional estimate of build costs is not made available, we will rely on published build cost data but this must be recognised as being less reliable as it cannot account for variations in site conditions and design.  This is particularly true for refurbishment work or energy efficiency and environmental upgrades.  In the absence of a professionally produced cost estimate for the specific project we may need to qualify our report and the reliance that can be placed on our valuation.

10.2  For Property in the course of development, we will reflect the stage reached in construction and the costs remaining to be spent at the date of valuation.  We will  have regard to the contractual liabilities of the parties involved in the development and any cost estimates that have been prepared by the professional advisers to the project.  For recently completed developments we will take no account of any retentions, nor will we make allowance for any outstanding development costs, fees, or other expenditure for which there may be a liability.

11.    VAT, taxation and costs

11.1  The reported valuation will be our estimate of the price that would be agreed with no adjustment made for costs that would be incurred by the parties in any transaction, including any liability for VAT, stamp duty or other taxes.  It is also gross of any mortgage or similar financial encumbrance.

12.    Property insurance

12.1  Except to the limited extent provided in clause 3 and clause 4 above we do not investigate or comment on how potential risks would be viewed by the insurance market.  Our Valuation will be on the Assumption that each Property would, in all respects, be insurable against all usual risks including fire, terrorism, ground instability, extreme weather events, flooding and rising water table at normal, commercially acceptable premiums.

13.    Reinstatement cost estimates

13.1  We can only accept a request to provide a building reinstatement cost estimate for insurance purposes alongside our Valuation of the Property interest on the following conditions:

(mm) the assessment provided is indicative, without liability and only for comparison with the current sum insured, and

(nn)  The building is not specialised or listed as being of architectural or historic importance.

13.2  Otherwise we can provide an assessment of the rebuilding cost by our specialist building surveyors as a separate service.

14.    Legal advice

14.1  We are appointed to provide valuation opinion(s) in accordance with our professional duties as valuation surveyors.  The scope of our service is limited accordingly.  We are not qualified legal practitioners and we do not provide legal advice.  If we indicate what we consider the effect of any provision in the Property's title documents, leases or other legal requirements may have on value, we strongly recommend that this be reviewed by a qualified lawyer before you take any action relying on our valuation.

15.    Loan security

15.1  If we are requested to comment on the suitability of the Property as a loan security we are only able to comment on any risk to the reported value that is inherent in either its physical attributes or the interest valued.  We will not comment on the degree and adequacy of capital and income cover for an existing or proposed loan or on the borrower's ability to service payments.

Part D - CBRE Valuation Report (Capital & Regional Portfolio)

Valuation Report

 

 

In respect of:

Portfolio of 6 properties held by Capital & Regional Plc

On behalf of:

the Addressees as set out below

Date of valuation:

30 June 2024

Contents

01...... Valuation Report. 1

Introduction. 1

Source of Information and Scope of Works 9

Valuation Assumptions. 11

02...... Appendices. 15

Appendix A: Schedule of Properties as at 30 June 2024. 16

Appendix B: Property Details as at 30 June 2024

Valuation Report

Introduction

Report Date	18 September 2024
Valuation Date	30 June 2024
Addressee	The Directors Capital & Regional PLC First Floor Strand Bridge House 138-142 Strand London WC2R 1HH (hereinafter referred to as the "Company") And Numis Securities Limited (trading as Deutsche Numis) 45 Gresham Street London EC2V 7BF (hereinafter referred to as "Deutsche Numis") And Stifel Nicolaus Europe Limited 150 Cheapside London EC2V 6ET (hereinafter referred to as "Stifel") (Deutsche Numis and Stifel together in their capacity as Joint Financial Advisers to the Company) And The Directors NewRiver REIT plc 89, Whitfield Street London W1T 4DE (hereinafter referred to as "NewRiver") And Jefferies International Limited 100 Bishopsgate London EC2N 4J (hereinafter referred to as "Jefferies") (Jefferies in their capacity as Financial Adviser to NewRiver) And Panmure Liberum Limited Ropemaker Place 25 Ropemaker Street London EC2Y 9LY (hereinafter referred to as "Panmure Liberum") (Panmure Liberum in their capacity as Sole Sponsor and Joint Corporate Broker to NewRiver) And Shore Capital Stockbrokers Limited Cassini House 57 St James's Street London SW1A 1LD (hereinafter referred to as "Shore Capital") (Shore Capital in their capacity as Joint Corporate Broker to NewRiver) And Kinmont Limited 5 Clifford Street London W1S 2LG (hereinafter referred to as "Kinmont") (Kinmont in their capacity as Joint Financial Adviser to NewRiver) and all the above hereinafter together referred to as the "Addressees"
The Properties	6 properties held by the Company, as set out in the Schedule of Properties below in Appendix A (each a "Property" and together the "Properties").
Instruction	To value without re-inspecting the unencumbered freehold and leasehold interests (as applicable) of the Properties on the basis of Market Value as at the Valuation Date in accordance with Terms of Engagement entered into between CBRE Limited ("CBRE") and the Addressees dated 13 September 2024 (the "Valuation").
Status of Valuer	You have instructed us to act as an External Valuer as defined in the current version of the RICS Valuation - Global Standards. Please note that the Valuation may be investigated by the RICS for the purposes of the administration of the Institution's conduct and disciplinary regulations in order to ensure compliance with the Valuation Standards.
Purpose and Basis of Valuation	The Valuation has been prepared for a Regulated Purpose as defined in the RICS Valuation - Global Standards (2022) and the UK national supplement current as at the Valuation Date (the "Red Book"). We understand that this valuation report and the Appendices to it (together the "Valuation Report") are required for inclusion in an announcement to be issued by NewRiver  in connection with a possible offer by NewRiver for the entire issued and to be issued ordinary share capital of the Company (the "Transaction") pursuant to Rule 2.4 of the City Code on Takeovers and Mergers (the "Takeover Code") (the "Rule 2.4 Announcement") The Valuation is on the basis of Market Value as defined in the current edition of the RICS Valuation - Global Standards and set out in Valuation Assumptions below. The effective date of our Valuation is 30 June 2024 (the "Valuation Date"). In accordance with the Red Book we have made certain disclosures in connection with this valuation instruction and our relationship with the Addressees.
Market Value of the Properties as at 30 June 2024	£374,900,000 (THREE HUNDRED AND SEVENTY-FOUR MILLION, NINE HUNDRED THOUSAND POUNDS) exclusive of VAT, as shown in the Schedule of Capital Values set out below. For the avoidance of doubt, we have valued the Properties as real estate and the values reported above represent 100% of the market values of the assets.  There are no negative values to report. Our opinion of Market Value is based upon the Scope of Work and Valuation Assumptions attached, and has been primarily derived using comparable recent market transactions on arm's length terms. The Properties are split by tenure as follows. Property Type Freehold Long Leasehold (250 years) Total Market Value of Properties held for Investment £297,900,000(5 Properties) £77,000,000 (1 Property) £374,900,000 (6 Properties)
Report Format	Appendix A of this Valuation Report contains the Schedule of Properties. Appendix B provides the individual property details of the Properties.
Market Conditions	Heightened global geopolitical tensions, combined with energy security issues, climate change and increased state-backed cyber-attacks continue to affect property market stability. While there is recent evidence of economic growth in the UK, along with expectations of interest rate reductions in the latter part of 2024, capital markets remain constrained and investors remain cautious. There are signs that capital values are beginning to stabilise in several sectors, however, there continues to be a high degree of polarisation between primary and secondary class assets. Experience has shown that consumer and investor behaviour can quickly change during periods of instability. Lending or investment decisions should reflect any heightened level of volatility and potential for changing market conditions. It is important to note that the conclusions set out in this Valuation Report are valid as at the Valuation Date only.  Where appropriate, we recommend that the Valuation is closely monitored, as we continue to track how markets respond to evolving events.
Portfolios and Aggregation	We have valued the Properties individually and no account has been taken of any discount or premium that may be negotiated in the market if all or part of the portfolio was to be marketed simultaneously, either in lots or as a whole.
Compliance with Valuation Standards	The Valuation has been prepared in accordance with the latest version of the RICS Valuation - Global Standards (incorporating the International Valuation Standards) and the UK national supplement (the "Red Book") current as at the Valuation Date.
	The Valuation has been prepared in accordance with, and as such is compliant with, the requirements of Rule 29 of the Takeover Code.
	The Properties have been valued by a valuer who is qualified in accordance with the Red Book and Rule 29.3 (a) (ii) and (iii) of the Takeover Code.  We confirm that we have sufficient and current local and national knowledge of the particular property market involved and have the necessary skills and understanding to undertake the Valuation competently.
	Where the knowledge and skill requirements of the Red Book have been met in aggregate by more than one valuer within CBRE, we confirm that a list of those valuers has been retained within the working papers, together with confirmation that each named valuer complies with the requirements of the Red Book.
	This Valuation is a professional opinion and is expressly not intended to serve as a warranty, assurance or guarantee of any particular value of the subject Properties.  Other valuers may reach different conclusions as to the value of the subject Properties. This Valuation is for the sole purpose of providing the intended user with the valuer's independent professional opinion of the value of the subject Properties as at the Valuation Date.
Sustainability Considerations	Wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. 'Sustainability' is taken to mean the consideration of such matters as environment and climate change, health and well-being and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can affect value. The range of issues includes key environmental risks, such as flooding, energy efficiency and climate, as well as matters of design, configuration, accessibility, legislation, management, and fiscal considerations - and current and historic land use. Sustainability has an impact on the value of an asset, even if not explicitly recognised. Valuers reflect markets, they do not lead them. Where we recognise the value impacts of sustainability, we are reflecting our understanding of how market participants include sustainability requirements in their bids and the impact on market valuations.
Climate Risk Legislation	From June 2019, the Climate Change Act 2008 (2050 Target Amendment) Order 2019 commits the UK Government to reducing greenhouse gas emissions by 100% from 1990 levels (i.e. a Net Zero position) by 2050. In 2021 an interim target was set, to reduce emissions by 78% by 2035, by decarbonising electricity generation.  This means that fossil fuels used in building, such as natural gas for heating, are incompatible with this commitment. The proposal to update the Minimum Energy Efficiency Standards, to require all non-domestic properties to a minimum EPC rating of B in 2030 has not been ratified and in the absence of any commentary from the current administration, we assume landlords will continue to work towards this target. We also note that the UK's introduction of mandatory climate related disclosures (reporting climate risks and opportunities consistent with recommendations by the "Task Force for Climate Related Financial Disclosure" (TCFD)), including the assessment of so-called physical and transition climate risks, will potentially have an impact on how the market views such risks and incorporates them into the sale of letting of assets. The European Union's "Sustainable Finance Disclosure Regulations" (SFDR) may impact on UK asset values due to the requirements in reporting to European investors.
Assumptions	The Properties' details on which each Valuation is based are as set out in this Valuation Report. We have made various assumptions as to tenure, letting, taxation, town planning, and the condition and repair of buildings and sites - including ground and groundwater contamination - as set out below. If any of the information or assumptions on which the Valuation is based are subsequently found to be incorrect, the Valuation figures may also be incorrect and should be reconsidered.
Variations and/or Departures from Standard Assumptions	None.
Independence		The total annual fees, including the fee for this assignment, earned by CBRE (or other companies forming part of the same group of companies within the UK) from the Company (or other companies forming part of the same group of companies) are less than 5.0% of the total annual UK revenues. The total annual fees, including the fee for this assignment, earned by CBRE (or other companies forming part of the same group of companies within the UK) from NewRiver (or other companies forming part of the same group of companies) are less than 5.0% of the total annual UK revenues. It is not anticipated this situation will vary in the financial year to 31 December 2024. We confirm that neither the valuers concerned nor CBRE have any personal interest in the Company, NewRiver or any of the Properties or in the outcome of the Valuation.
Previous Involvement and Conflicts of Interest		We confirm that we have valued 2 of the Properties on behalf of the Company on a half-yearly basis for financial reporting purposes for in excess of 10 years, we have valued 1 of the Properties on a half-yearly basis for financial reporting purposes for in excess of 5 years and the other 3 we have valued on a half-yearly basis for financial reporting purposes for less than 5 years.  The most recent valuation being as at 30 June 2024. From time to time, CBRE provides agency or professional services to the Company. CBRE provides some agency and/or professional services to some of the occupiers of the Properties and where this occurs, any conflict arising is managed through an information barrier. We do not consider that this previous involvement represents a conflict of interest and you have confirmed to us that you also consider this to be the case. We confirm the Retail Capital Markets team of CBRE has provided advice to NewRiver on this Transaction and all parties have agreed to this on the basis that the agreed information barriers between the two teams have been put in place. CBRE has carried out agency and some professional services on behalf of NewRiver for in excess of 10 years on an ad hoc basis. We confirm that we are not aware of any further conflicts of interest that would prevent us from exercising the required levels of independency and objectivity in undertaking the Valuation. Copies of our conflict-of-interest checks have been retained within the working papers.
Disclosure		The principal signatory of this Valuation Report has continuously been the signatory of valuations for the Company of: The Mall, Wood Green, 17& Central, Walthamstow and The Exchange, Ilford, since December 2022; and for The Mall, Maidstone, The Gyle, Edinburgh and The Marlowes, Hemel Hempstead, since December 2023. CBRE has continuously been carrying out valuation instructions for the Company since 2007. CBRE has carried out agency and some professional services on behalf of the Company for in excess of 10 years on an ad hoc basis.
Responsibility		For the purposes of Rule 29 of the Takeover Code, we are responsible for this Valuation Report and accept responsibility for the information contained in this Valuation Report and confirm that to the best of our knowledge (having taken all reasonable care to ensure that such is the case) the information contained in this Valuation Report is in accordance with the facts and this Valuation Report makes no omissions likely to affect its import. Save for any responsibility arising under the Takeover Code to any person as and to the extent there provided, to the fullest extent permitted by law we do not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in accordance with this Valuation Report or our statement above.
Reliance		Save as set out in "Responsibility" above, the contents of this Valuation Report may only be relied upon by: i)             Addressees of the Report; and ii)            the parties who have received prior written consent from CBRE in the form of a reliance letter for the specific purpose set out herein and no responsibility is accepted to any third party for the whole or any part of its contents. No reliance may be placed upon the contents of this Valuation Report by any party for any purpose other than in connection with the purpose of Valuation.
Publication		Neither the whole nor any part of our Valuation Report nor any references thereto may be included in any published document, circular or statement nor published in any way without our prior written approval of the form and context in which it will appear (such approval to not be unreasonably withheld or delayed). Such publication of, or reference to this Valuation Report will not be permitted unless it contains a sufficient contemporaneous reference to any departure from the Red Book or the incorporation of the special assumptions referred to herein.
		Yours faithfully Ana Burke MRICS Director RICS Registered Valuer For and on behalf of CBRE Limited [phone] [e-mail]	Yours faithfully Peter Stoughton-Harris BSc (Hons) MRICS Executive Director RICS Registered Valuer For and on behalf of CBRE Limited [phone] [e-mail]

Sources of Information and Scope of Works
Sources of Information	We have carried out our work based upon information supplied to us by the Company and their professional advisors, as set out within this Valuation Report, which we have assumed to be correct and comprehensive, including: 1.    Tenancy and management information, supplied on the 28th May and updated ad hoc until the valuation date; 2.    Capex information, supplied on the 5th June; 3.    Measured floor areas; and 4.    Detailed comments from the Company on our draft Valuations, principally at a draft valuation meeting on the 17th June.
The Properties	Our Valuation Report contains a brief summary of the Property details on which our Valuation has been based.
Inspection	As part of our valuation instruction from the Company for financial reporting purposes, the Properties have been subject to external inspections each year. As instructed, we have not re-inspected all the Properties for the purpose of this Valuation. With regard to those Properties which have not been subject to re-inspection, the Company has confirmed that they are not aware of any material changes to the physical attributes of the Properties, or the nature of their location, since the last inspection.  We have assumed this advice to be correct. Where Properties have not been reinspected, the valuer will not carry out the usual range of enquiries performed during a full inspection of these Properties and will make the appropriate assumptions based on the information provided or available that, without a full inspection, cannot be verified. The instructing parties acknowledge and accept the heightened and inherent uncertainty and risks relying upon a valuation prepared on a desktop basis.
Areas	We have not measured the Properties but have relied upon the floor areas provided to us by you or your professional advisors, which we have assumed to be correct and comprehensive, and which you have advised us have been calculated using the: Gross Internal Area (GIA), Net Internal Area (NIA) or International Property Measurement Standard (IPMS) 3 - Office, measurement methodology as set out in the latest edition of the RICS Property Measurement Standards.
Environmental Considerations	We have not been instructed to make any investigations in relation to the presence or potential presence of contamination in land or buildings or the potential presence of other environmental risk factors and to assume that if investigations were made to an appropriate extent then nothing would be discovered sufficient to affect value. We have not carried out investigation into past uses, either of the Properties or of any adjacent lands, to establish whether there is any potential for contamination from such uses or sites, or other environmental risk factors and have therefore assumed that none exist.
Sustainability Considerations	In carrying out this Valuation, we have considered the impact of sustainability factors on the value of the Properties.  Based on our inspections and our review of the information that was available to us, we have not identified any risk factors which, in our opinion, would affect value.  However, CBRE gives no warranty as to the absence of such risk factors in relation to sustainability.
Services and Amenities	We understand that the Properties are located in an area served by mains gas, electricity, water and drainage. None of the services have been tested by us. Enquiries regarding the availability of utilities/services to the development schemes are outside the scope of our Valuation Report.
Repair and Condition	We have not carried out building surveys, tested services, made independent site investigations, inspected woodwork, exposed parts of the structure which were covered, unexposed or inaccessible, nor arranged for any investigations to be carried out to determine whether or not any deleterious or hazardous materials or techniques have been used, or are present, in any part of the Properties. We are unable, therefore, to give any assurance that the Properties are free from defect.
Town Planning	We have not undertaken planning enquiries.
Titles, Tenures and Lettings	Details of title/tenure under which the Properties are held and of lettings to which it is subject are as supplied to us. We have not generally examined nor had access to all the deeds, leases or other documents relating thereto. Where information from deeds, leases or other documents is recorded in this Valuation Report, it represents our understanding of the relevant documents. We should emphasise, however, that the interpretation of the documents of title (including relevant deeds, leases and planning consents) is the responsibility of your legal adviser. We have not conducted credit enquiries on the financial status of any tenants. We have, however, reflected our general understanding of purchasers' likely perceptions of the financial status of tenants.
Introduction	An Assumption is defined in the Red Book Glossary and VPS 4 to be a "supposition taken to be true" (an "Assumption"). Assumptions are facts, conditions or situations affecting the subject of, or approach to, a valuation that it has been agreed need not be verified by the valuer as part of the valuation process.  Assumptions are made when it is reasonable for the valuer to accept that something is true without the need for specific investigation. The Company has confirmed and we confirm that our Assumptions are correct as far as the Company and we, respectively, are aware.  In the event that any of these Assumptions prove to be incorrect then our Valuations should be reviewed.  The principal Assumptions which we have made are stated within this Valuation Report.  For the avoidance of doubt, the Assumptions made do not affect compliance with the approach to Market Value under the Red Book.
Capital Values	The Valuation has been prepared on the basis of "Market Value", which is defined in the Red Book as: "The estimated amount for which an asset or liability should exchange on the Valuation Date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion." The Valuation represents the figure that would appear in a hypothetical contract of sale at the Valuation Date. No adjustment has been made to this figure for any expenses of acquisition or realisation - nor for taxation which might arise in the event of a disposal. No account has been taken of any inter-company leases or arrangements, nor of any mortgages, debentures or other charge. No account has been taken of the availability or otherwise of capital based Government or European Community grants.
Taxation, Costs and Realisation Costs	As stated above, no allowances have been made for any expenses of realisation nor for taxation which might arise in the event of a disposal.  Our Valuations reflect purchasers' statutory and other normal acquisition costs.
VAT	We have not been advised whether the Properties are elected for VAT. All rents and capital values stated in this Valuation Report are exclusive of VAT.
Net Annual Rent	Net annual rent is defined for the purposes of this transaction as "the current income or income estimated by the valuer: (i)   ignoring any special receipts or deduction arising from the property; (ii)  excluding Value Added Tax and before taxation (including tax on profits and any allowances for interest on capital or loans); and (iii)  after making deductions for superior rents (but not for amortisation), and any disbursements including, if appropriate, expenses of managing the property and allowances to maintain it in a condition to command its rent".
Estimated Net Annual Rental Value	The estimated net annual rental value is based on the current rental value of each of the Properties.  The rental value reflects the terms of the leases where the Properties, or parts thereof, are let at the Valuation Date.  Where the Properties, or parts thereof, are vacant at the Valuation Date, the rental value reflects the rent we consider would be obtainable on an open market letting as at the Valuation Date.
Rental Values	Unless stated otherwise rental values indicated in our Valuation Report are those which have been adopted by us as appropriate in assessing the capital value and are not necessarily appropriate for other purposes, nor do they necessarily accord with the definition of Market Rent in the Red Book, which is as follows: "The estimated amount for which an interest in real property should be leased on the Valuation Date between a willing lessor and a willing lessee on appropriate lease terms in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion."
Fixtures, Fittings and Equipment	Where appropriate we have regarded the shop fronts of retail and showroom accommodation as forming an integral part of the building. Landlord's fixtures such as lifts, escalators, central heating and other normal service installations have been treated as an integral part of the building and are included within our Valuations. Process plant and machinery, tenants' fixtures and specialist trade fittings have been excluded from our Valuations. All measurements, areas and ages quoted in our Valuation Report are approximate.
Environmental Matters	In the absence of any information to the contrary, we have assumed that: a)    the Property/Properties is/are not contaminated and is not adversely affected by any existing or proposed environmental law; b)    any processes which are carried out on the Property/Properties which are regulated by environmental legislation are properly licensed by the appropriate authorities; c)    in England and Wales, the Property/Properties possesses current Energy Performance Certificates (EPCs) as required under the Government's Energy Performance of Buildings Directive - and that they have an energy efficient standard of 'E', or better. Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 it became unlawful for landlords to rent out business or residential premise from 1st April 2018 - unless the site has reached a minimum EPC rating of an 'E', or secured a relevant exemption. In Scotland, we have assumed that the Property/Properties possesses current EPCs as required under the Scottish Government's Energy Performance of Buildings (Scotland) Regulations - and that they meet energy standards equivalent to those introduced by the 2002 building regulations. The Assessment of Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016 requires building owners to commission an EPC and Action Plan for sale or new rental of non-domestic buildings bigger than 1,000 sq m that do not meet 2002 building regulations energy standards. Action Plans contain building improvement measures that must be implemented within 3.5 years, subject to certain exemptions; d)    In January 2021 the Government set out proposals in England and Wales for 'improving the energy performance of privately rented homes'. The key tenets of the proposals are to: reduce emissions; tackle fuel poverty; improve asset quality; reduce energy bills; enhance energy security; and support associated employment. The proposals were wide ranging and included new demands on residential landlords through Energy Performance Certificates ('EPCs'). Existing PRS Regulations set a minimum standard of EPC Band E for residential units to be lettable. The Government proposals see this threshold being raised to EPC Band C for all new tenancies created from 01 April 2025 and for all existing tenancies by 1 April 2028. The principle for relevant building works is to be 'fabric first' meaning maximisation of components and materials that make up the building fabric to enhance, for example, insulation, ventilation and air-tightness. The proposals also cite; compliance measures and penalties for landlords, letting agents and local authorities; and affordability support for carrying out necessary works. The implication was (as with the existing EPC Band E requirement) that private rented units may effectively be rendered unlettable if they failed to meet or exceed the minimum EPC requirement. On 20 September 2023 the Prime Minister announced revisions to the PRS Regulations such that residential landlords will not be fined if they do not meet these requirements. It was not specified if this denotes a delay to the effective fates or the removal of the penalty. In addition the Prime Minister announced that Boiler Upgrade Scheme subsidies will be increased from £5,000 to £7,500, and the timeframe for removal of gas fired boilers delayed until 2035. The change in policy is more towards incentivising change as opposed to enforcement. The UK's Net Zero 2050 pledge is still being upheld although future revisions are not out of the question, particularly in the event of a potential change in Government. It is likely that institutional landlords in particular will continue to target energy efficiency given policy change uncertainty and the ever increasing focus on ESG; we therefore expect EPC ratings to continue to be a focus for residential investors and occupiers in the UK; e)    the Properties are either not subject to flooding risk or, if they are, that sufficient flood defences are in place and that appropriate building insurance could be obtained at a cost that would not materially affect the capital value; and f)     invasive species such as Japanese Knotweed are not present on the Properties. High voltage electrical supply equipment may exist within, or in close proximity of, the Properties. The National Radiological Protection Board (NRPB) has advised that there may be a risk, in specified circumstances, to the health of certain categories of people. Public perception may, therefore, affect marketability and future value of the Properties. Our Valuation reflects our current understanding of the market and we have not made a discount to reflect the presence of this equipment.
Repair and Condition	In the absence of any information to the contrary, we have assumed that: a)    there are no abnormal ground conditions, nor archaeological remains, present which might adversely affect the current or future occupation, development or value of the Properties; b)    the Properties are free from rot, infestation, structural or latent defect; c)    no currently known deleterious or hazardous materials or suspect techniques, including but not limited to Composite Panelling, ACM Cladding, High Alumina Cement (HAC), Asbestos, Reinforced Autoclaved Aerated Concrete (Raac), have been used in the construction of, or subsequent alterations or additions to, the Properties; and d)    the services, and any associated controls or software, are in working order and free from defect. We have otherwise had regard to the age and apparent general condition of the Properties. Comments made in the property details do not purport to express an opinion about, or advise upon, the condition of uninspected parts and should not be taken as making an implied representation or statement about such parts.
Title, Tenure, Lettings, Planning, Taxation and Statutory & Local Authority Requirements	Unless stated otherwise within this Valuation Report, and in the absence of any information to the contrary, we have assumed that: a)    the Properties possess a good and marketable title free from any onerous or hampering restrictions or conditions; b)    the building has been erected either prior to planning control, or in accordance with planning permissions, and has the benefit of permanent planning consents or existing use rights for their current use; c)    the Properties are not adversely affected by town planning or road proposals; d)    the building complies with all statutory and local authority requirements including building, fire and health and safety regulations, and that a fire risk assessment and emergency plan are in place; e)    only minor or inconsequential costs will be incurred if any modifications or alterations are necessary in order for occupiers of the Properties to comply with the provisions of the Disability Discrimination Act 1995 (in Northern Ireland) or the Equality Act 2010 (in the rest of the UK); f)     all rent reviews are upward only and are to be assessed by reference to full current market rents; g)    there are no tenant's improvements that will materially affect our opinion of the rent that would be obtained on review or renewal; h)    tenants will meet their obligations under their leases, and are responsible for insurance, payment of business rates, and all repairs, whether directly or by means of a service charge; i)     there are no user restrictions or other restrictive covenants in leases which would adversely affect value; j)     where more than 50% of the floorspace of the Properties is in residential use, the Landlord and Tenant Act 1987 (the "Act") gives certain rights to defined residential tenants to acquire the freehold/head leasehold interest in the Properties. Where this is applicable, we have assumed that necessary notices have been given to the residential tenants under the provisions of the Act, and that such tenants have elected not to acquire the freehold/head leasehold interest. Disposal on the open market is therefore unrestricted; k)    where appropriate, permission to assign the interest being valued herein would not be withheld by the landlord where required; l)     vacant possession can be given of all accommodation which is unlet or is let on a service occupancy; and m)  Land Transfer Tax (or the local equivalent) will apply at the rate currently applicable.        In the UK, Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LABTT) in Scotland or Land Transaction Tax (LTT) in Wales, will apply at the rate currently applicable.

Appendices

Appendix A: Schedule of Properties as at 30 June 2024

Address	Property Type	Tenure	Most Recent Inspection Date	Ownership Purpose
The Mall Wood Green, 159 High Street, London, United Kingdom, N22 6YQ	Retail	Freehold	29 June 2024	Investment
The Mall, Maidstone, Pad's Hill, Maidstone, United Kingdom, ME15 6AT	Retail	Freehold	29 November 2023	Investment
The Exchange, Ilford, High Street, London, United Kingdom, IG1 1RS	Retail	Freehold	30 April 2024	Investment
17 & Central, Walthamstow, 42 Selbourne Road, London, United Kingdom, E17 7JR	Retail	Long Leasehold (250 years)	29 June 2024	Investment
Marlowes, Hemel Hempstead, Hemel Hempstead, Hemel Hempstead, United Kingdom, HP1 1DX	Retail	Freehold	24 November 2023	Investment
The Gyle Edinburgh, Gyle Ave, Edinburgh, United Kingdom, EH12 9JY	Retail	Heritable title	6 July 2024	Investment

Appendix B: Property Details as at 30 June 2024

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
The Gyle Shopping Centre, Gyle Avenue, Edinburgh, EH12 9JY	The property is located 6 km west of Edinburgh city centre. The property is held on heritable title. This enclosed centre is anchored by Morrisons and Marks & Spencer, which are located on western and eastern ends of the centre respectively with all other retail units located in between two anchor stores. The food court is located at the first floor and consists of six food outlets. The property benefits from 2,500 surface car parking spaces. The bus stop is located on the site with the tram service being located in the immediate vicinity connecting The Gyle with Edinburgh city centre and the airport. The anchor stores, Morrisons and Marks and Spencer are let for a long term (125+ years) at a peppercorn rent albeit they contribute to the service charge of the centre. Other major occupiers include Next, Boots and WH Smith and their combined income is c.40% of the total income however the lease for Boots expires in July 2025. The property benefits from weighted average unexpired lease term of 3.16 years to expiry and 2.89 years to break (excluding mall income). The property's occupancy rate is 93.05% by ERV albeit there are anumber of temporary leases included in this figure.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five- yearly, upwards- only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£6,283,109 (Excl.)	£5,431,949 (Excl.)	£42,000,000

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
The Mall, Wood Green, 159 High Road, London, N22 6YQ	The property is located in the north London suburb of Wood Green, approximately 6 miles north of central London. The property is held on a freehold title. This enclosed centre comprises two separate elements with frontage to either side of the High Street, which are connected by an enclosed bridge on the first floor. The centre is anchored by Primark, Travelodge, Cineworld, H&M and TK Maxx. There is food and beverage throughout with a concentration of food outlets in part of the north side of the scheme on the ground floor. The property benefits from a multi storey car park with 1,500 parking spaces. There is good public transport provision with Wood Green Underground Station approximately 3 minutes' walk. Other major occupiers include Boots, Argos and Pure Gym. The top five occupiers combined income is c.25% of the total income with H&M in the process of renewing their lease, which has expired. The property benefits from weighted average unexpired lease term of 5.42 years to expiry and 3.96 years to break (excluding car parking income and mall income). The property's occupancy rate is 95.29% by ERV.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five- yearly, upwards- only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£13,043,519 (Excl.)	£12,781,062 (Excl.)	£152,500,000

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
17 & Central,  42 Selborne Road, Walthamstow, E17 7JR	Walthamstow is located approximately 9 miles north east of Central London in the London Borough of Waltham Forest. The property is held on a Long Lease from 23 June 2022 for 250 years. This enclosed centre is anchored by Asda and Lidl supermarkets, located on western and eastern ends of the centre respectively with all other retail units located in between these stores.  The old food court has been transformed into a modern food and leisure destination.. The space consists of  a number of food outlets, a bar, outdoor terrace, events space and a childrens soft play facility..  There is a multi-storey car park located within the property providing parking for approximately 500 vehicles accessed via Selborne Road. The scheme is located adjacent to Walthamstow Underground Station and bus station, a short walk from the centre. Pplans to redevelop and extend The Mall, Walthamstow were approved by London Borough of Waltham Forest's Planning Committee on 27 January 2021. This approved scheme will provide new retail space, 495 new homes for private rent (Phase 1), 43 new homes for private sale, a new external children's play area and re-landscaped town square. The works began in mid-July 2022 and completion of Phase 1 is scheduled for mid-2025. Other major occupiers include TK Maxx, The Gym and Sportsdirect. Top five occupiers account for c.30% of the total income. The property benefits from weighted average unexpired lease term of 5.96 years to expiry and 4.18 years to break (excluding car parking income and mall income). The property's occupancy rate is 94.60% by ERV (with the exclusion of the units under reconfiguration to facilitate Phase 1 of the new development) albeit there are a number of temporary let leases included in this figure.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five- yearly, upwards- only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£5,995,877 (Excl.)	£6,937,707 (Excl.)	£77,000,000

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
The Exchange, Ilford, High Road, Ilford, IG1 1RS	Ilford is located approximately 9 miles northeast of Central London in the London Borough of Redbridge. The property is held on a freehold title. This enclosed centre is retail anchored by TK Maxx, who have relocated to the mid-level of the former Debenhams store, as well as a two-level Next store. The Instant Group, which occupied the top level of the former Debenhams store, have exercised their break and will vacate in September 2024. The unit will be split, and part of the unit is under offer to a childrens soft play centre. The lower level of the former Debenhams unit is under offer to a supermarket operator. The NHS are also now in occupation on a 25 year lease. The property benefits from fronting on to the new entrance at Ilford Railway Station, for the Elizabeth Line. The scheme is also well connected to the national road system with the M25 and M11 situated 11 miles and 4 miles respectively from Ilford. There is a multi-storey car park located within the property providing parking for approximately 1,200 vehicles. The combined income of the top 5 tenants is c.26% of the total income. The property benefits from weighted average unexpired lease term of 5.71 years to expiry and 4.86 years to break (excluding car parking income and mall income). The property's occupancy rate is 92.19% by ERV albeit there are a  number of temporary letting leases included in this figure.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five- yearly, upwards- only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£5,604,935 (Excl.)	£6,413,615 (Excl.)	£62,300,000

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
The Mall, Pads Hill, Maidstone, ME15 6AT	Maidstone is largest town in Kent and is the municipal centre for the county. The town lies 32 miles from the south east of London. The property is held on a freehold title. This enclosed centre comprises retail accommodation arranged over 3 floors. The centre is anchored by B&M, Boots, Matalan, Sportsdirect and Next. The centre is adjacent to a large Sainsbury's and is located in Maidstone town centre. The town's main bus station is located between the Property and the adjacent Sainsbury's and provides direct access to the scheme. Buses run to several local and regional destinations.  There is a multi-storey car park located within the property providing parking for approximately 1,050 vehicles. Other tenants include Pure Gym, Iceland and Lewis Home Retail (TJ Hughes). The combined income of the top 5 tenants is c.23% of the total income. The property benefits from weighted average unexpired lease term of 5.55 years to expiry and 4.18 years to break (excluding car parking income and mall income). The property's occupancy rate is 88.52% by ERV albeit there are a number of temporary letting leases included in this figure.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five-yearly, upwards-only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£5,132,618(Excl.)	£5,191,367(Excl.)	£31,300,000

Property	Description, Age and Tenure	Terms of Existing Tenancies	Annual Rent receivable as at 30 June 2024	Estimated Rental Value (ERV) as at 30 June 2024	Market Value as at 30 June 2024
The Marlowes, Hemel Hempstead, HP2 4TU	The property is located in Hemel Hempstead town centre, approximately 24 miles north of central London. The property is held on freehold title. The shopping centre was built in 1990 with a main mall running north to south and two connecting malls to the Marlowes. Most of the trading takes place on the ground floor, with some on the first floor in the North and South Courts. Hemel Hempstead railway station,situated 1.3 miles southeast of the property is on the London Midland line, providing a frequent and direct train service to London Euston, with a fast journey time of only 27 minutes. The property benefits from a rooftop multi-story car park providing 1,200 spaces. The scheme is served by a number of bus routes, which are accessed adjacent to the centre. Major occupiers include B&M, Pure Gym, New Look, Metro Bank, Sportsdirect and Bank of Scotland and their combined income is c.46% of the total income however New Look and Sportsdirect have lease expiry/tenant break option in the next 24 months.  Marks & Spencer also have a store entrance directly accessing the centre which is held on a long lease (82 years) at a peppercorn rent. The property benefits from weighted average unexpired lease term of 3.99 years to expiry and 3.31 years to break (excluding car parking income and mall income). The property's occupancy rate is 85.60% by ERV albeit there are a number of temporary letting leases included in this figure.	The majority of leases are drawn on full repairing and insuring terms. In general, the retail unit rents are subject to five- yearly, upwards- only rent reviews to market rental value. In addition to these tenancies, there are several licences held within the centre, in respect of kiosks, advertising, telecom stations and sundry mall provisions. There are also a number of concessionary rents and short-term inclusive lettings that have been granted.	£2,746,420 (Excl.)	£3,197,612 (Excl.)	£9,800,000

3  appendix ‎3

NEWRIVER QUANTIFIED FINANCIAL BENEFITS STATEMENT

Part A

Paragraph 4 of this announcement contains statements of the estimated cost savings and synergies expected to arise from any Combination (together, the "Quantified Financial Benefits Statement").

A copy of the Quantified Financial Benefits Statement is set out below:

The NewRiver Directors, having undertaken a review and analysis of the potential cost savings of the Combined Group, as well as taking into account factors they can influence, believe the Combined Group could deliver shareholder value through the expected realisation of approximately £7.3 million of gross pre-tax run-rate recurring annual cost synergies. These would be expected to be realised primarily from consolidation of:

·              board, senior management, central and support functions and savings related to Capital & Regional's status as a publicly traded company (which would no longer be required on a standalone basis), together with third party support, including professional advisory fees, which would be expected to contribute approximately 85 per cent. (approximately £6.2 million) of the gross pre-tax run-rate recurring annual cost synergies; and

·              head office and other operating infrastructure such as technology and IT, which would be expected to contribute approximately 15 per cent. (approximately £1.1 million) of the gross pre-tax run-rate recurring annual cost synergies.

Potential areas of dis-synergy have been considered by the NewRiver Directors, with the principal area of dis-synergy being income generated from property management services (equating to approximately £1.1 million per annum), which is assumed to cease on completion of any Combination because Capital & Regional provides these services to tenants but NewRiver would intend to align this approach with its existing portfolio whereby these services are provided by a third party specialist. Potential cost savings associated with the outsourcing of these services have been reflected in the expected recurring cost synergy figure.

Accordingly, the NewRiver Directors believe that the Combined Group could deliver approximately £6.2 million of net pre-tax run-rate recurring annual cost synergies.

The majority of the above cost synergies would be expected to be effective shortly following completion of the Combination and it is expected that the full benefit of the synergies would be unlocked within 12 months of completion of the Combination on an annualised basis.

The identified cost savings would be contingent on the completion of the Combination and would not be achieved by either NewRiver or Capital & Regional independently. The estimated cost synergies referred to above reflect both the beneficial elements and the relevant costs.

The NewRiver Directors have considered one-off costs in connection with realising the expected cost synergies and estimated these to be approximately £2.9 million, which would predominantly be incurred in the first 12 months following completion. For the avoidance of doubt, this approximate £2.9 million is not factored into the £6.2 million of net pre-tax run-rate recurring annual cost synergies referred to above.

These statements of estimated cost savings and synergies relate to future actions or circumstances which, by their nature, involve risks, uncertainties and contingencies. As a consequence, in the event that any firm offer were to be made and any Combination effected, the identified synergies and estimated savings referred to may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. For the purposes of Rule 28 of the Code, the statements of estimated cost savings and synergies contained in this announcement are solely the responsibility of NewRiver and the NewRiver Directors. Any statement of intention, belief or expectation for the Combined Group following any Combination becoming effective is also an intention, belief or expectation of the NewRiver Directors and not of the Capital & Regional Directors.

These statements are not intended as a profit forecast and should not be interpreted as such. No part of these statements, or this announcement generally, should be construed or interpreted to mean that the Combined Group's earnings in the first year following any Combination becoming effective, or in any subsequent period, would necessarily match or be greater than or be less than those of NewRiver and/or Capital & Regional for the relevant preceding financial period or any other period.

Further information on the bases of belief supporting the Quantified Financial Benefits Statement, including the principal assumptions and sources of information, is set out below.

Bases of belief and principal assumptions

Following initial discussion regarding the Possible Offer, senior NewRiver personnel have worked to identify, challenge, and quantify potential synergies as well as the potential costs to achieve and timing of such synergies. The assessment and quantification of potential synergies have been informed by NewRiver's management's industry expertise and knowledge.

In preparing the Quantified Financial Benefits Statement, Capital & Regional has shared certain operational and financial information to facilitate a detailed analysis in support of evaluating the potential synergies available from the creation of the Combined Group.

The NewRiver team has performed a bottom-up analysis of the costs included in the Capital & Regional financial information and has sought to include in the synergy analysis those costs which it believes will be either reduced or eliminated as part of the Combined Group.

The cost bases used as the basis for the quantified financial benefits exercise are the NewRiver full year expenses for the financial year ended 31 March 2024 and the Capital & Regional full year expenses for the year ended 30 December 2023. The NewRiver Directors have, in addition, made the following assumptions:

·                 The value of the Combined Group's property portfolio remaining at or above the 30 June 2024 external valuation of c. £0.9 billion (based on the property valuation reports for NewRiver prepared by Knight Frank and Colliers, as set out in Parts A and B of Appendix 2 to this announcement and the property valuation report for Capital & Regional prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement).

·                 NewRiver retains its status as a UK-REIT.

·                 There would be no material impact on the underlying operations of either NewRiver or Capital & Regional or their ability to continue to conduct their businesses after the de-duplication and rationalisation of listing, administrative and operational expenses.

·                 There would be no material change to the make-up of the Combined Group's portfolio for the purposes of this analysis.

·                 There would be no material change to macroeconomic, political, regulatory or legal conditions in the markets or regions in which NewRiver and Capital & Regional operate that will materially impact on the implementation or costs to achieve the proposed cost savings.

·                 There would be no change in tax legislation or tax rates or other legislation in the UK that could materially impact the ability to achieve any benefits.

Reports

As required by Rule 28.1(a) of the Code, BDO, as reporting accountant to NewRiver, and Jefferies, as lead financial adviser to NewRiver, have provided the opinions required under that Rule. Copies of these reports are included at Parts B and C of this Appendix 3. Each of BDO and Jefferies has given and not withdrawn its consent to the publication of its report in this announcement in the form and context in which it is included.

These statements are not intended as a profit forecast and should not be interpreted as such. These statements of estimated synergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties and contingencies. As a result, the estimated synergies referred to may not be achieved, or may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. Neither the Quantified Financial Benefits Statement nor any other statement in this announcement should be construed as a profit forecast or interpreted to mean that NewRiver's earnings in the first full year following any Combination becoming effective, or in any subsequent period, will necessarily match or be greater than or be less than those of NewRiver or Capital & Regional for the relevant preceding financial period or any other period.

Due to the scale of the Combined Group, in the event that any firm offer is made and any Combination becomes effective, there may be additional changes to the Combined Group's operations. As a result, and given the fact that the changes relate to the future, the resulting synergies may be materially greater or less than those estimated.

Part B

REPORT FROM BDO ON NEWRIVER QUANTIFIED FINANCIAL BENEFITS STATEMENT

BDO LLP 55 Baker Street London W1U 7EU

The Directors                                                                                       18 September 2024

NewRiver REIT plc

89 Whitfield Street

London

W1T 4DE

Jefferies International Limited

100 Bishopsgate London                               

EC2N 4JL                                     

Dear Sir or Madam

NewRiver REIT plc (the "Company")

Possible offer for Capital & Regional plc (the "Target")

We report on the quantified financial benefits statement (the "Statement") by the directors of the Company (the "Directors") included in Part A of Appendix 3 of the Rule 2.4 Announcement (the "Announcement") dated 18 September 2024 to the effect that:

"The NewRiver Directors, having undertaken a review and analysis of the potential cost savings of the Combined Group, as well as taking into account factors they can influence, believe the Combined Group could deliver shareholder value through the expected realisation of approximately £7.3 million of gross pre-tax run-rate recurring annual cost synergies. These would be expected to be realised primarily from consolidation of:

·              board, senior management, central and support functions and savings related to Capital & Regional's status as a publicly traded company (which would no longer be required on a standalone basis), together with third party support, including professional advisory fees, which would be expected to contribute approximately 85 per cent. (approximately £6.2 million) of the gross pre-tax run-rate recurring annual cost synergies; and

·              head office and other operating infrastructure such as technology and IT, which would be expected to contribute approximately 15 per cent. (approximately £1.1 million) of the gross pre-tax run-rate recurring annual cost synergies.

Potential areas of dis-synergy have been considered by the NewRiver Directors, with the principal area of dis-synergy being income generated from property management services (equating to approximately £1.1 million per annum), which is assumed to cease on completion of any Combination because Capital & Regional provides these services to tenants but NewRiver would intend to align this approach with its existing portfolio whereby these services are provided by a third party specialist. Potential cost savings associated with the outsourcing of these services have been reflected in the expected recurring cost synergy figure.

Accordingly, the NewRiver Directors believe that the Combined Group could deliver approximately £6.2 million of net pre-tax run-rate recurring annual cost synergies.

The majority of the above cost synergies would be expected to be effective shortly following completion of the Combination and it is expected that the full benefit of the synergies would be unlocked within 12 months of completion of the Combination on an annualised basis.

The identified cost savings would be contingent on the completion of the Combination and would not be achieved by either NewRiver or Capital & Regional independently. The estimated cost synergies referred to above reflect both the beneficial elements and the relevant costs.

The NewRiver Directors have considered one-off costs in connection with realising the expected cost synergies and estimated these to be approximately £2.9 million, which would predominantly be incurred in the first 12 months following completion. For the avoidance of doubt, this approximate £2.9 million is not factored into the £6.2 million of net pre-tax run-rate recurring annual cost synergies referred to above.

These statements of estimated cost savings and synergies relate to future actions or circumstances which, by their nature, involve risks, uncertainties and contingencies. As a consequence, in the event that any firm offer were to be made and any Combination effected, the identified synergies and estimated savings referred to may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. For the purposes of Rule 28 of the Code, the statements of estimated cost savings and synergies contained in this announcement are solely the responsibility of NewRiver and the NewRiver Directors. Any statement of intention, belief or expectation for the Combined Group following any Combination becoming effective is also an intention, belief or expectation of the NewRiver Directors and not of the Capital & Regional Directors.

These statements are not intended as a profit forecast and should not be interpreted as such. No part of these statements, or this announcement generally, should be construed or interpreted to mean that the Combined Group's earnings in the first year following any Combination becoming effective, or in any subsequent period, would necessarily match or be greater than or be less than those of NewRiver and/or Capital & Regional for the relevant preceding financial period or any other period."

Opinion

In our opinion, the Statement has been properly compiled on the basis stated.

The Statement has been made in the context of the disclosures in Part A of Appendix 3 of the Announcement setting out the basis of the Directors' belief (including the principal assumptions and sources of information supporting the Statement and their analysis and explanation of the underlying constituent elements).

This report is required by Rule 28.1(a) of the City Code on Takeovers and Mergers (the "Code") and is given for the purpose of complying with that requirement and for no other purpose.

Responsibilities

It is the responsibility of the Directors to prepare the Statement in accordance with the requirements of Rule 28 of the Code.

It is our responsibility to form our opinion, as required by Rule 28.1(a) of the Code, as to whether the Statement has been properly compiled on the basis stated and to report that opinion to you.

Save for any responsibility which we may have to those persons to whom this report is expressly addressed, to the fullest extent permitted by law we do not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in connection with this report or our statement, required by and given solely for the purposes of complying with Rule 23.2 of the City Code, consenting to its inclusion in the Announcement.

Basis of preparation of the Statement

The Statement has been prepared on the basis stated in Part A of Appendix 3 of the Announcement.

Basis of opinion

We conducted our work in accordance with the Standards for Investment Reporting issued by the Financial Reporting Council ("FRC") in the United Kingdom. We are independent in accordance with the FRC's Ethical Standard as applied to Investment Circular Reporting Engagements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We have discussed the Statement, together with the basis of the Directors' belief, with the Directors and Jefferies International Limited. Our work did not involve any independent examination of any of the financial or other information underlying the Statement.

We planned and performed our work so as to obtain the information and explanations we considered necessary in order to provide us with reasonable assurance that the Statement has been properly compiled on the basis stated.

Our work has not been carried out in accordance with auditing or other standards and practices generally accepted in the United States of America or other jurisdictions outside the United Kingdom and accordingly should not be relied upon as if it had been carried out in accordance with those standards and practices.

We do not express any opinion as to the achievability of the benefits identified by the Directors in the Statement.

Since the Statement and the assumptions on which it is based relate to the future and may therefore be affected by unforeseen events, we express no opinion as to whether the actual benefits achieved will correspond to those anticipated in the Statement and the differences may be material.

Yours faithfully

BDO LLP

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)

Part C

REPORT FROM JEFFERIES ON NEWRIVER QUANTIFIED FINANCIAL BENEFITS STATEMENT

The Board of Directors
NewRiver REIT plc
89 Whitfield Street
London
W1T 4DE

18 September 2024

Dear NewRiver Directors

Quantified Financial Benefits Statement of NewRiver REIT plc ("NewRiver")

We refer to the Quantified Financial Benefits Statement, the bases of belief thereof and the notes thereto (together, the "Statement") as set out in Part A of Appendix 3 of the Rule 2.4 announcement dated 18 September 2024 (the "Announcement"), for which the board of directors of NewRiver (the "Directors") are solely responsible under Rule 28.3 of the UK City Code on Takeovers and Mergers (the "Code").

We have discussed the Statement (including the assumptions, bases of calculation and sources of information referred to therein) with the Directors and those officers and employees of NewRiver who developed the underlying plans as well as with BDO LLP ("BDO"). The Statement is subject to uncertainty as described in the Announcement and our work did not involve an independent examination of any of the financial or other information underlying the Statement.

We have relied upon the accuracy and completeness of all the financial and other information provided to us by or on behalf of NewRiver, or otherwise discussed with or reviewed by us, and we have assumed such accuracy and completeness for the purposes of providing this letter.

We do not express any view as to the achievability of the quantified financial benefits identified by the Directors in the Statement or otherwise.

We have also reviewed the work carried out by BDO and have discussed with them the opinion set out in Part B of Appendix 3 of the Announcement addressed to you and us on this matter and the bases of calculation for the Statement.

This letter is provided to you solely in connection with Rule 28.1(a)(ii) of the Code and for no other purpose. We accept no responsibility to NewRiver or its shareholders or any person other than the Directors in respect of the contents of this letter. We are acting exclusively as financial advisers to NewRiver and no one else in connection with the offer by NewRiver for Capital & Regional referred to in the Announcement and it was for the purpose of complying with Rule 28.1(a)(ii) of the Code that NewRiver requested Jefferies International Limited to prepare this report on the Statement. No person other than the Directors can rely on the contents of this letter, and to the fullest extent permitted by law, we exclude all liability (whether in contract, tort or otherwise) to any other person, in respect of this letter, its contents or the work undertaken in connection with this letter or any of the results that can be derived from this letter or any written or oral information provided in connection with this letter, and any such liability is expressly disclaimed except to the extent that such liability cannot be excluded by law.

On the basis of the foregoing, we consider that the Statement, for which you as the Directors are solely responsible for purposes of Rule 28 of the Code, has been prepared with due care and consideration.

Yours faithfully,

Jefferies International Limited

4  appendix 4

COMBINED GROUP DEBT POSITION

	NewRiver	Capital & Regional	Combined Group4
Gross debt	£304 million	£199 million	£444 million
Undrawn facilities	£100 million	£0 million	£100 million
Average cost of debt1	3.5%	4.3%	3.5%
Fixed or hedged1	100%	98%	100%
Unsecured1	100%	0%	68%
Weighted average maturity1	3.7 years	2.4 years	3.3 years
ICR2	6.3x	3.6x	4.5x
Net debt/EBITDA	5.1x	7.2x	5.9x-6.0x
LTV3	31%	46%	42-43%

Notes:

1.   Excludes £4 million of debt related to associates.

2.   Calculated by comparing actual net property income received versus net cash interest payable on a 12 month look back basis.

3.   Computed as net debt divided by Gross Asset Value (GAV).

4.   Adjusted for the cash component of the consideration payable pursuant to the Combination, estimated transaction costs, estimated net proceeds of the Placing, the repayment of three Capital & Regional secured loan facilities totalling £59 million and net pre-tax run-rate recurring annual cost synergies of £6.2 million.

5  appendix 5

ADDITIONAL COMBINED GROUP PORTFOLIO INFORMATION

As at 30 June 20241	NewRiver	Capital & Regional	Combined Group
Portfolio Valuation (GAV)	£539 million2	£350 million3	£889 million4
Contracted Rent	£52 million	£38 million	£90 million
Net Initial Yield (%)	7.3	7.7	7.4
Equivalent Yield (%)	8.6	8.4	8.5
Assets	41	6	47

Notes:

1.   All figures in table are approximate.

2.   Based on the property valuation reports for NewRiver prepared by Knight Frank and Colliers, as set out in Parts A and B of Appendix 2 to this announcement.

3.   Based on the property valuation report for Capital & Regional prepared by Knight Frank, as set out in Part C of Appendix 2 to this announcement.

4.   Based on the property valuation reports for each of NewRiver and Capital & Regional prepared by Knight Frank and Colliers, as set out in Parts A, B and C of Appendix 2 to this announcement.

6  appendix 6

TOP 5 TENANTS INFORMATION

Tenant	NewRiver		Capital & Regional		Combined Group
	Tenant	% of rent	Tenant	% of rent	Tenant	% of rent
Tenant 1	Poundland	3.3%	Boots	5.4%	Boots	3.7%
Tenant 2	B&M	2.9%	TK Maxx	3.1%	TK Maxx	2.4%
Tenant 3	Boots	2.4%	Next	2.5%	B&M	2.3%
Tenant 4	M&S	2.4%	Primark	2.2%	Poundland	2.1%
Tenant 5	Iceland	2.1%	H&M	2.2%	Superdrug	1.9%

7  appendix ‎7

DEFINITIONS

The following definitions apply throughout this announcement unless the context requires otherwise:

BDO	BDO LLP, a limited liability partnership registered in England and Wales (with registered number OC305127);
Business Day	any day (excluding any Saturday or Sunday or any public holiday in England and Wales and South Africa) on which banks in the City of London and Johannesburg are generally open for business;
Capital & Regional	Capital & Regional plc, a public limited company incorporated in England and Wales with company number 01399411 and whose registered office is at 138-142 Strand, Strand Bridge House, London WC2R 1HH;
Capital & Regional Additional Distribution	has the meaning given to it in paragraph 2 of this announcement;
Capital & Regional Additional Dividend	has the meaning given to it in paragraph 2 of this announcement;
Capital & Regional Board	the board of Capital & Regional Directors as at the date of this announcement or, where the context so requires, the board of Capital & Regional Directors from time to time;
Court Meeting	the meeting of Capital & Regional Shareholders to be convened by order of the Court pursuant to section 896 of the Companies Act for the purpose of considering and, if thought fit, approving the Scheme (with or without amendment) and any adjournment thereof;
Capital & Regional Directors	the directors of Capital & Regional as at the date of this announcement or, where the context so requires, the directors of Capital & Regional from time to time;
Capital & Regional General Meeting	the Capital & Regional General Meeting of Capital & Regional Shareholders to be convened in connection with the Scheme to consider and, if thought fit, to approve the Capital & Regional Resolution(s) (with or without amendment), including any adjournment, postponement or reconvening thereof;
Capital & Regional Group	Capital & Regional and its subsidiaries and subsidiary undertakings from time to time;
Capital & Regional Interim Dividend	has the meaning given to it in paragraph 2 of this announcement;
Capital & Regional Meetings	the Court Meeting and the Capital & Regional General Meeting;
Capital & Regional Resolution(s)	the resolution(s) to be proposed at the Capital & Regional General Meeting necessary to approve and implement the Scheme, including a resolution authorising the Capital & Regional Board to take all actions as it may consider necessary or appropriate to give effect to the Scheme, a resolution to amend the Articles by the adoption and inclusion of a new article under which any Capital & Regional Shares issued or transferred after the Scheme Record Time (other than to NewRiver and/or its nominees) shall be automatically transferred to NewRiver (and, where applicable, for consideration to be paid to the transferee or to the original recipient of the Capital & Regional Shares so transferred or issued) on the same terms as the Combination (other than terms as to timings and formalities);
Capital & Regional Shareholders	the registered holders of Capital & Regional Shares from time to time;
Capital & Regional Share Award	an option to acquire Capital & Regional Shares granted pursuant to the Capital & Regional Share Plans;
Capital & Regional Share Plans	(a)          the Capital & Regional plc 2018 Long Term Incentive Plan; and (b)          the Capital & Regional plc Combined Incentive Plan;
Capital & Regional Shares	the ordinary shares of 10 pence each in the capital of Capital & Regional from time to time;
CBRE	CBRE Limited;
Closing Price	the closing middle market price of a share as derived from the Daily Official List on any particular date;
Code	the City Code on Takeovers and Mergers, as issued from time to time by or on behalf of the Panel;
Colliers	Colliers International Property Consultants Limited;
Combination	in the event that NewRiver announces an intention to make a firm offer for Capital & Regional under Rule 2.7 of the Code, the proposed acquisition of the entire issued and to be issued ordinary share capital of Capital & Regional by NewRiver to be implemented by way of the Scheme or, should NewRiver so elect (with the consent of the Panel) by way of the Takeover Offer, and, where the context admits, any subsequent revision, variation, extension or renewal thereof;
Combined Group	the NewRiver Group as enlarged by the Capital & Regional Group following completion of any Combination;
Companies Act	the Companies Act 2006, as amended from time to time;
Conditions	has the meaning given to it in paragraph 13 of this announcement;
Court	the High Court of Justice in England and Wales;
Daily Official List	the daily official list of the London Stock Exchange;
Dealing Disclosure	an announcement pursuant to Rule 8 of the Code containing details of dealings in interests in relevant securities of a party to an offer;
Deutsche Numis	Numis Securities Limited, joint financial adviser and joint corporate broker to Capital & Regional;
effective	either: (a)          if any Combination is implemented by way of the Scheme, the Scheme having become effective pursuant to its terms; or (b)          if any Combination is implemented by way of a Takeover Offer, the Takeover Offer having been declared, or having become, unconditional in accordance with the requirements of the Code;
FCA	the Financial Conduct Authority;
FSMA	the Financial Services and Markets Act 2000, as amended from time to time;
Growthpoint	Growthpoint Properties Limited;
ICR	interest cover ratio;
Independent Capital & Regional Directors	the Capital & Regional Directors other than Norbert Leon Sasse and Panayiotis (Panico) Theocharides;
Initial Rule 2.4 Announcement	the announcement made by Capital & Regional on 23 May 2024 relating to a possible offer by, amongst others, NewRiver for Capital & Regional in accordance with Rule 2.4 of the Code;
ISIN	the International Securities Identification Number;
Jefferies	Jefferies International Limited, lead financial adviser, and joint corporate broker to NewRiver;
Johannesburg Stock Exchange or JSE	The JSE Limited, a public company incorporated in accordance with the laws of South Africa and licensed as an exchange under the South African Financial Markets Act, 19 of 2012, or the securities exchange operated by JSE Limited, as the context indicates;
Joint Brokers	Panmure Liberum, Jefferies and Shore Capital;
Kinmont	Kinmont Limited, joint financial adviser to NewRiver;
Knight Frank	Knight Frank LLP;
Last Practicable Date	close of business on 17 September 2024, being the last Business Day immediately prior to the date of this announcement;
London Stock Exchange	London Stock Exchange plc;
LTV	loan-to-value: the outstanding amount of a loan as a percentage of property value;
Main Market	the London Stock Exchange's main market for listed securities;
Market Abuse Regulation	Regulation (EU) No 596/2014 and the delegated acts, implementing acts, technical standards and guidelines thereunder as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended from time to time;
New NewRiver Shares	the NewRiver Shares proposed to be allotted and issued to Capital & Regional Shareholders in connection with any Combination under the Possible Offer Terms;
NewRiver	NewRiver REIT plc, a public limited company incorporated in England and Wales with company number 10221027 and whose registered office is at 89 Whitfield Street, London W1T 4DE;
NewRiver Board	the board of directors of NewRiver as at the date of this announcement or, where the context so requires, the board of directors of NewRiver from time to time;
NewRiver Combination Resolution(s)	the shareholder resolution(s) to be proposed at the NewRiver General Meeting to grant authority to the NewRiver Directors to allot New NewRiver Shares in connection with any Combination;
NewRiver Directors	the directors of NewRiver as at the date of this announcement or, where the context so requires, the directors of NewRiver from time to time;
NewRiver General Meeting	the general meeting of NewRiver to be convened by the NewRiver Board in connection with the passing of the NewRiver Combination Resolution(s);
NewRiver Group	NewRiver and its subsidiaries and subsidiary undertakings from time to time;
NewRiver Interim Dividend	has the meaning given to it in paragraph 2 of this announcement;
NewRiver Shareholders	the holders of NewRiver Shares;
NewRiver Shares	the ordinary shares of one pence each in the capital of NewRiver;
Offer Document	if (with the consent of the Panel, as applicable) NewRiver elects to implement any Combination by way of a Takeover Offer, the document to be sent to Capital & Regional Shareholders which will contain, inter alia, the terms and conditions of the Takeover Offer;
Offer Period	the offer period (as defined in the Code) relating to Capital & Regional commencing on 23 May 2024 and ending on the earlier of the date on which any Combination becomes effective and/or the date on which the Scheme lapses or is withdrawn (or such other date as the Panel may decide);
Offer Period Last Practicable Date	close of business on 22 May 2024, being the last Business Day immediately prior to the date of the Initial Rule 2.4 Announcement;
Official List	the Official List of the FCA;
Panmure Liberum	Panmure Liberum Limited, sole sponsor and joint corporate broker to NewRiver;
Placing	the placing of new NewRiver Shares to be announced on or around 18 September 2024;
Placing Launch Announcement	the announcement launching the Placing expected to be released immediately following this announcement;
Quantified Financial Benefits Statement	the statements of estimated cost savings and synergies arising out of any Combination set out in Appendix 3 to this announcement;
Panel	the UK Panel on Takeovers and Mergers;
Registrar of Companies	the Registrar of Companies in England and Wales;
REIT	a real estate investment trust, being a company or group to which Part 12 of the CTA 2010 applies (including, where relevant, a REIT Group);
Restricted Jurisdiction	any jurisdiction into which, or from which, sending any documents in connection with the Possible Offer and/or making any firm offer, or any information relating to any firm offer and/or any Combination, available would violate the local laws or regulations of that jurisdiction resulting in a significant risk of civil, regulatory or criminal exposure;
Scheme	a scheme of arrangement under Part 26 of the Companies Act to implement any Combination, with or subject to any modification, addition or condition approved or imposed by the Court and agreed to by Capital & Regional and NewRiver;
Scheme Court Order	the order of the Court sanctioning the Scheme under section 899 of the Companies Act;
Scheme Document	the document to be dispatched to Capital & Regional Shareholders including the particulars required by section 897 of the Companies Act in connection with the Scheme;
Scheme Record Time	has the meaning given to it in paragraph 2 of this announcement;
Shore Capital	Shore Capital Stockbrokers Limited, joint corporate broker to NewRiver;
South Africa	the Republic of South Africa;
South African Register	the branch register of Capital & Regional Shareholders maintained by or on behalf of Capital & Regional pursuant to its secondary listing on the JSE;
Stifel	Stifel Nicolaus Europe Limited, joint financial adviser and joint corporate broker to Capital & Regional;
Takeover Offer	if (with the consent of the Panel as applicable) NewRiver elects to implement any Combination by way of a takeover offer as defined in Chapter 3 of Part 28 of the Companies Act, the offer to be made by or on behalf of NewRiver to acquire the entire issued and to be issued ordinary share capital of Capital & Regional and, where the context admits, any subsequent revision, variation, extension or renewal of such offer;
UFFO	underlying funds from operations;
UK or United Kingdom	the United Kingdom of Great Britain and Northern Ireland; and
UK Listing Rules	the UK listing rules, made by the FCA under Part 6 of FSMA, as amended from time to time, and the UK Listing Rules Instrument 2024 (FCA 2024/23).

All references to time in this announcement are to London time unless otherwise stated.

All references to "pounds", "pounds Sterling", "Sterling", "£", "pence", "penny" and "p" are to the lawful currency of the United Kingdom.

All references to "South African Rand" are to the lawful currency of South Africa.

A reference to "includes" shall mean "includes without limitation", and references to "including" and any other similar term shall be construed accordingly.

For the purposes of this announcement, "subsidiary", "subsidiary undertaking", "undertaking" and "equity share capital" have the meanings given by the Companies Act.

References to an enactment include references to that enactment as amended, replaced, consolidated or re-enacted by or under any other enactment before or after the date of this announcement.

References to the singular include the plural and vice versa.

 

END