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Woodford sells £40m property firm stake to Barnett

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Woodford sells £40m property firm stake to Barnett

Neil Woodford has sold a £40 million stake in a property investment company to his former Invesco colleague Mark Barnett.

According to a regulatory filing, a position of around 6% in NewRiver Reit changed hands at the start of the month. 

The disposal reduced Woodford's (pictured above) holding in the company, which specialises in convenience stores and pubs, to 23.35%, while Invesco's stake has increased to 25%. Based on NewRiver's current valuation of around £715 million, the positions are valued at £167 million and £178 million respectively. 

Barnett (pictured below) replaced Woodford as head of Invesco's equity income franchise after the latter quit the firm to set up his eponymous fund firm in 2014. 

This is not the first time Woodford has transferred a significant holding to Barnett since he set up on his own.

In March 2018 he sold his £40 million stake in AJ Bell to Barnett shortly before the firm announced its intention to float on the market.

The NewRiver transaction comes as Woodford battles to get his performance back on track after a torrid run. 

In the three years to the end of March, his Woodford Equity Income fund has lost 8.6%, well behind the peer group average fund gain of 17%. 

Last week our sister title Funds Insider revealed the Guernsey stock exchange has dealt a blow to his attempt to reduce unquoted holdings in his flagship fund by suspending dealing in three of the stakes in private companies he recently listed on the Channel Island.

Woodford had listed his stakes in the companies in the Channel Islands as a means of remaining within the City regulator's rules on the amount of unquoted company stocks a fund can hold.

Before this blow, withdrawals from the Woodford Equity Income fund spiked last month, jumping to a six-month high of £160 million after its controversial share swap with Woodford Patient Capital Trust.

The redemptions in March further reduced the fund’s size to £4.4 billion, according to data from Lipper, compared to its £10 billion peak in mid-2017.

 

 

 

 

 

 

 

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