Hedge funds step up bets against retail landlord New River
Hedge funds are betting against New River as concerns rise that it could be the latest retail landlord hurt by the industry’s struggles.
The short position in the company has increased to 7.35 per cent compared to 5.41 per cent on 1 July last year, according to disclosed positions published by Shorttracker.
Read more: New River posts drop in asst value as high street woes worsen
GLG Partners, Merian Global Investors and Odey Asset Management are among those betting that New River’s share price will drop.
The firm, which owns 34 shopping centres across the UK and counts Boots, Marks and Spencer and Primark among its tenants, has seen its share price fall 33.9 per cent in the past 12 months.
The challenges facing retailers have spread to shopping centre operators. A string of retailers, including Sir Philip Green’s Arcadia, have recently launched company voluntary arrangement’s (CVA) , a controversial rescue process which involves closing stores and slashing rents.
Read more: Marston’s sells 200 pubs to New River Retail
New River has invested in its pub portfolio in a bid to balance out the struggling retail sector, and owns more than 600 pubs across the UK.
New River’s chief executive Allan Lockhart told the Telegraph: “We fully recognise the challenges facing the UK retail sector but we remain confident in our market positioning, operating platform and future growth prospects”.