NewRiver Retail Limited
("NewRiver" or "the Company")
Successful acquisition of four Retail Park properties for £17.3m at 9.12% net initial yield
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces the acquisition of a portfolio of four retail park properties (the "Linear Portfolio") from a UK institution for a total consideration of £17.3 million.
The freehold assets have been acquired at an attractive net initial yield of 9.12%. Each of the assets provides a range of substantial asset management opportunities to significantly enhance income and capital value.
Importantly, NewRiver benefits from extensive knowledge of three of the four locations through existing ownership of key town centre holdings.
The Linear Portfolio comprises two multi-let retail park properties and two retail warehouse properties located in high catchment areas across the UK. The portfolio is let to six tenants providing a long weighted average unexpired lease term of 7.4 years.
In total the portfolio comprises 196,300 sq ft of lettable space with a total annual rent of £1,670,096 equating to an affordable average rent of £8.51 per sq ft. The attractive entry price is also approximately 45% below the price paid for the same assets the last time they were traded in the market.
The Linear Portfolio includes the following assets:
Clough Road Retail Park near Hull is a 95,000 sq ft retail warehouse let to electrical and computer retailers Curry's and PC World as well as Smyths Toys, a leading children's entertainment retailer, generating an annual rental income of £713,284. Located close to Hull city centre, Clough Road is an established retail, leisure and commercial destination. NewRiver benefits from a strong knowledge of the Hull area through its ownership The Prospect Centre which it acquired in December 2012.
Poundstretcher Wymondham near Norwich, is a 26,300 sq ft modern retail warehouse let to discount retailer Poundstretcher on a 10 year lease at an annual rent of £250,000. The asset is the only retail warehouse in the historic market town.
Halfords Paisley near Glasgow is a 20,100sq ft unit let to car and bike specialist Halfords on an 8 year lease at an annual rent of £160,704. The asset benefits from a prominent location close to Paisley town centre. NewRiver currently owns Paisley's main shopping centre, The Piazza Shopping Centre, which it acquired in August 2011.
Additionally, NewRiver has acquired Mount Street Retail Park in Wrexham in North Wales where the Company owns two separate high street retail units acquired in March 2010. The 54,900 sq ft retail park is located close to the town centre with retailers including fashion retailer Matalan, homeware and garden centre operator Colour Supplies, generating an annual rental income of £546,108 with an average weighted average lease length of 8.75 years. The retail park is situated on the edge of Wrexham, the largest town in North Wales.
Allan Lockhart, Property Director at NewRiver Retail, said:
"We are delighted to complete this significant acquisition, which with the introduction of gearing, has the potential to deliver cash on cash returns of 12% per annum underpinned by a stable income stream and the opportunity to enhance the value through the widening of planning consents together with refurbishment and extensions leading to an improved retail offer in locations that we know intimately."
-Ends-
For further information
NewRiver Retail Limited David Lockhart, Chief Executive Mark Davies, Finance Director |
Tel: 020 3328 5800 |
Bell Pottinger David Rydell/Guy Scarborough/Charlotte Offredi |
Tel: 020 7861 3232 |
Liberum Tim Graham/Simon Atkinson/Jamie Richards |
Tel: 020 3100 2000 |
About NewRiver
NewRiver Retail Limited is an AIM listed REIT. The Company is a specialist real estate investor and asset manager focusing solely on UK retail 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. NewRiver Retail is the UK's third largest Shopping Centre owner by number with assets under management of approximately £600 million principally comprising 24 UK wide shopping centres, 18 high street assets, 1 supermarket and a portfolio of 202 public houses principally suitable for conversion to alternative uses. The portfolio has 1,117 occupiers, a total of 4.6 million sq ft, total annual footfall of over 100 million and a retail occupancy rate of 95 per cent.
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.
Founded in 2009, NewRiver has become the UK's leading retail-focused property investment business. The Company's shares were admitted to London's AIM in September of the same year. For more information on NewRiver, please visit www.nrr.co.uk
