NewRiver Retail Limited
("NewRiver" or "the Company")
Significant lettings for The Forum Shopping Centre
Further to the Company's announcement of 20 September 2012, NewRiver Retail Limited (AIM and CISX: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces it has secured two significant pre-lettings as part of its active asset management strategy and commenced its development programme for The Forum Shopping Centre in Wallsend, Newcastle-upon-Tyne.
As part of NewRiver's major redevelopment plans for the Centre, including the re-modelling of the former Co-operative store, North Tyneside Council has signed a 30-year break-free lease at an initial rent of approximately £363,000 per annum which will be used for a modern 50,000 sq ft library and community centre.
Additionally, the Company has signed a 10-year lease with a leading value retailer for one of the three new ground-floor retail units to be created by the redevelopment. The starting rent is approximately £125,000 per annum. Advanced legal negotiations with other leading value-led national retailers are underway to lease the final two units. The three retail units will equate to an estimated gross rent of over £370,000 and in total account for 27,000 sq ft of new retail space.
The library and retail units form part of the first phase of NewRiver's major development plans for The Forum Shopping Centre which received detailed planning approval in September 2012. Phase one of the project, which unlocks significant inherent value, includes re-modelling the former Co-operative store to increase the net-lettable area and introduce mixed-use facilities including the new library as well as additional refurbishment works to the Centre as whole.
The development is anticipated to begin in spring 2013 with the partial handover of the retail units expected in October 2013 and completion of the library anticipated in early 2014.
The second phase of the planning approval includes the proposed construction of a new 46,000 sq ft food store and approximately 300 space surface car park.
Since acquiring The Forum Shopping Centre in 2010 NewRiver has delivered a raft of asset management initiatives to enhance the Centre's attraction and drive footfall. The Company has completed the refurbishment of the former In-shops to the Wallsend Market, the installation of Amazon lockers to enhance customer convenience and introduced free car parking. NewRiver has also completed new lettings to major retailers including Phones 4U, Bet Fred and The Post Office and free-Wi-Fi will be available throughout the centre from April 2013.
The Forum redevelopment represents a prime example of the Company's ability to identify and deliver significant value-creation opportunities through development, asset enhancement and management. NewRiver's ambition is to create a highly attractive town centre that will draw a wide range of retailers and leisure providers to the vibrant north east town. It is one of a series of NewRiver initiatives to enhance its asset base through its core strategy of active asset management and risk-controlled development.
Allan Lockhart, Property Director at NewRiver Retail said, "NewRiver is delighted to be partnering with North Tyneside Council to deliver the new library to Wallsend. NewRiver's strategy is customer-focused and renovation of the vacant units demonstrates the Company's commitment to town-centre regeneration and the improvement of The Forum Shopping Centre for the benefit of retailers and customers."
"NewRiver has continued to significantly enhance the Centre since it was acquired in 2010. The Forum Shopping Centre is extremely important for the town centre's success and the mixed use approach combining retail and leisure is essential to this.
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For further information
NewRiver Retail Limited David Lockhart, Chief Executive Mark Davies, Finance Director |
Tel: 020 3328 5800 |
Pelham Bell Pottinger David Rydell/Guy Scarborough |
Tel: 020 7861 3232 |
Cenkos Securities Ian Soanes/Max Hartley |
Tel: 020 7397 8900 |
Investec Bank plc Garry Levin/David Anderson |
Tel: 020 7597 5970 |
About NewRiver
NewRiver Retail Limited is a REIT status specialist real estate investor and asset manager focusing solely on the UK retailing sector with a particular focus on food and value retailing. The management team, with over 100 years combined experience in the UK commercial property market, actively engages with retailers, stakeholders and consumers. With assets under management of £400 million comprising 23 UK wide shopping centres, 16 high street retail units and two supermarkets, the portfolio has 732 occupiers, a total of 2.8 million square feet, total annual footfall of over 65 million and an occupancy rate on its retail estate of 96%. The Company's activities include active and entrepreneurial asset management and risk controlled development, utilising both its own balance sheet and co-investment joint venture structures. It is NewRiver's intention to become one of the leading sector-focused value-creating property investment businesses operating in the UK retail sector. The Company was founded in 2009 and its shares were admitted to London's AIM and Channel Islands Stock Exchange (CISX) in September of the same year. For more information on NewRiver, please visit www.nrr.co.uk
