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NewRiver REIT plc announced the formation of a new retail park Capital Partnership with affiliates of Soilbuild Group Holdings Ltd and United Engineers Limited. This Capital Partnership completed the acquisition of The Springs retail park in Leeds from Legal & General for £73.5m, reflecting a topped up net initial yield of 7.0% and an equivalent yield of 7.9%. NewRiver holds a 25% interest in the Capital Partnership, resulting in a net equity investment of £9.3m.
| Date | 29 Sept 2026 |
| Time | 07:00:04 |
| Category | Acquisitions and alliances |
| ID | 6474W |
NewRiver REIT plc
(“NewRiver” or the “Company”)
Formation of Strategic Retail Park Capital Partnership and Acquisition of The Springs Retail Park, Leeds
NewRiver REIT plc announces the formation of a new retail park Capital Partnership with affiliates of Soilbuild Group Holdings Ltd ("Soilbuild") and United Engineers Limited ("United Engineers"), two long-established and leading Singapore-based real estate investors. The Capital Partnership creates a scalable platform through which NewRiver can grow its exposure to retail parks, one of its highest conviction investment sectors, in a capital-efficient manner whilst generating long-term recurring fee income alongside attractive direct investment returns.
The Capital Partnership announces it has completed its first acquisition, The Springs retail park in Leeds, for £73.5m from Legal & General. The purchase price reflects a topped up net initial yield of 7.0% and an equivalent yield of 7.9%.
NewRiver holds a 25% interest in the Capital Partnership, resulting in a net equity investment of £9.3m following completion of a loan facility.
NewRiver has been appointed to provide acquisition, financing and asset management services to the Capital Partnership, generating recurring fee income. The transaction is in line with the Group's strategy to expand its capital-light asset management and capital partnerships business.
The Springs is a c.275,000 sq ft retail and leisure park located at the intersection of junction 46 of the M1 and the Leeds Ring Road (ELOR) with over 900 car parking spaces and occupiers including M&S, Next, TK Maxx, Boots, Mango, The Range, Nando’s and Odeon.
Highlights
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Establishment of a new retail park-focused Capital Partnership between NewRiver and Singapore-based real estate groups, Soilbuild and United Engineers. |
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The partners share an ambition to grow the partnership significantly over the medium term, subject to market conditions and identification of suitable investment opportunities. |
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Acquisition of The Springs, Leeds for £73.5m, equating to a topped up net initial yield of 7.0% and an equivalent yield of 7.9%, which reflects the inherent day one rental reversion. The Springs is expected to deliver attractive risk-adjusted returns supported by strong occupier trading performance, deliverable asset management opportunities and credible rental growth potential. |
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Constructed in 2018, The Springs currently has a high occupancy of 96%, a highly affordable occupational cost ratio of only 8.6% with an average rent of £19.2 per sq ft supportive of rental reversion, an attractive WALE of 7.5 years underpinning rental security and is expected to be fully let within 6 months. |
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NewRiver will earn recurring asset management fee income, together with acquisition and financing fees, through the provision of services to the Capital Partnership. |
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NewRiver’s proforma LTV following this acquisition is 44%, remaining comfortably within the Company’s 50% policy. NewRiver retains an active FY27 disposal pipeline of selected lower-growth assets to support a return towards its 40% guidance. |
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The Capital Partnership advances NewRiver's strategy by expanding its capital-light asset management and capital partnerships business, increasing its exposure to retail parks and generating long-term recurring fee income alongside attractive direct investment returns. |
Allan Lockhart, Chief Executive, commented: “This Capital Partnership is a strong endorsement of the retail sector and of NewRiver’s own retail expertise and operating platform. Retail parks are one of our highest conviction investment sectors, and this Capital Partnership creates a scalable platform for long-term growth.
By combining NewRiver’s operating expertise with long-term international capital, we can expand our presence in the sector in a capital-efficient way, generating recurring fee income alongside attractive investment returns.
The Springs is an exceptional first acquisition for the Capital Partnership. It is a high-quality asset with attractive fundamentals, strong occupier performance and clear opportunities to deliver further income and value growth.
This transaction also establishes a long-term relationship with partners who share our conviction in the retail park sector. Together, we have the ambition to build a significant portfolio over time while maintaining our disciplined approach to capital allocation.”
Lim Han Qin, Director of Soilbuild Group Holdings Limited, commented: “The launch of this partnership marks a significant milestone in the growth of our UK retail portfolio, a sector which aligns firmly with our broader real estate strategy, to undertake scalable investments into high-quality assets with growing cash flows. This partnership is complementary to our Group’s existing PBSA business in UK and demonstrates our commitment and focus in expanding and growing our UK business.”
Zhong Ming, Executive Director, United Engineers Limited, commented: “We are excited to be partnering with NewRiver, which brings a leading operating platform and a long-standing track record of successfully investing in the UK retail market. We look forward to working closely with the NewRiver team to execute our strategy and grow the partnership over the coming years.”
For further information
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NewRiver REIT plc |
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+44 (0)20 3328 5800 |
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Allan Lockhart (Chief Executive) Will Hobman (Chief Financial Officer) |
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FTI Consulting |
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+44 (0)20 3727 1000 |
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Dido Laurimore Eve Kirmatzis |
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About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in owning, operating and developing essential, everyday destinations throughout the UK.
Following the completion of its acquisition of Capital & Regional in December 2024, NewRiver has a £0.8 billion UK wide portfolio covering 7.0 million sq ft, comprising 24 shopping centres and 11 conveniently located retail parks occupied by tenants predominately focused on essential, everyday goods and services. In addition, we manage 15 shopping centres and 16 retail parks on behalf of Capital Partners, taking our total Assets Under Management to £2.1 billion. Our objective is to own and operate essential, everyday destinations across the UK, focused on retail parks, core shopping centres and regeneration opportunities to deliver long-term attractive recurring income returns and capital growth for our shareholders.
NewRiver is listed on the Equity shares (commercial companies) category of the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31
About Soilbuild and United Engineers
Soilbuild Group Holdings Ltd is a Singapore headquartered integrated real estate group established in 1976, with development, construction and asset management capabilities across industrial, business space and residential property.
United Engineers Limited, founded in 1912 and one of Singapore's pioneer real estate companies, owns a portfolio of Singaporean commercial and retail assets. United Engineers has been a wholly owned subsidiary of SGX-listed Yanlord Land Group Limited since 2020.
Soilbuild and United Engineers are established co-investment partners, having jointly developed a residential project in Singapore, Hillock Green, with gross development value of over S$900 million. Together they will hold a 75% interest in the partnership.