TIDMNRR 
 
RNS Number : 1222X 
NewRiver Retail Limited 
01 December 2010 
 

 
 
 
                        NewRiver Retail Ltd ("NewRiver") 
 
                          Major Portfolio Acquisition 
 
 
NewRiver Retail, the UK specialist REIT focused on the retail sector, announces 
that it has completed the acquisition of a major portfolio of five UK shopping 
centres from the CPI Retail Active Management (CReAM) fund. 
The portfolio, over which fixed charge receivers were appointed in July 2010 by 
Barclays Bank plc, the security agent appointed by the senior debt providers, 
has been acquired off market by NewRiver at an aggregate cost of approximately 
GBP53.0 million, which represents in aggregate an attractive net initial yield 
of 8.35 per cent. 
The acquisition has been financed by a GBP34.58 million facility, provided by 
HSBC, a new banking relationship to NewRiver.  The outstanding equity 
requirement of approximately GBP19.0 million has been provided by the proceeds 
of the issue of the Convertible Unsecured Loan Stock to Forum and Spearpoint, as 
announced by the Company on 28 October 2010. 
The assets within the portfolio offer a good diversification of income in terms 
of geography, number of tenancies and lease expiry profile. With a total 
approximate lettable area of 518,000 sq ft, the five shopping centres are 
located across the UK in: Bramley in Leeds, Burgess Hill in West Sussex, 
Erdington in Birmingham, Fareham in Hampshire and Wallsend in the Newcastle upon 
Tyne area. 
The majority of tenants are in the food, value and mass market retail market and 
represent 67 per cent. of the portfolio's rental income. Key tenants include 
strong covenants such as Tesco, Iceland, Lidl, Argos, New Look, Poundstretcher 
and Boots. 
The portfolio offers an attractive weighted average lease expiry profile of 6.74 
years and the current rental levels within the portfolio range from GBP25.00 to 
GBP47.50 Zone A which reflects NewRiver's strategy of targeting assets with 
stable and affordable rental income streams that can benefit from further active 
asset management. 
The transaction was complex and structured to minimise acquisition costs through 
NewRiver being assigned the corporate entity that owned the assets and 
simultaneous to that assignment NewRiver has refinanced the existing outstanding 
debt. 
Commenting on the acquisition, Allan Lockhart, Executive Property Director of 
NewRiver, said: 
"We are delighted to have been able to complete the acquisition of this major 
portfolio of five shopping centres off market and at an attractive cost of GBP53 
million which represents a discount of circa 32 per cent. to the last time this 
portfolio was traded in the market in 2005 at a price of GBP78.1 million and a 
42 per cent. discount to the portfolio's peak value of GBP92m in December 2006. 
"The portfolio is an excellent transaction for NewRiver, exactly consistent with 
the Company's investment strategy of targeting food anchored and value retail 
centres with stable income profiles and low occupational costs. 
"There are a number of attractive features within this portfolio including the 
excellent income security that an unexpired lease term average of 6.74 years 
provides. Four out of the five shopping centres offer significant retail 
extension opportunities for food retailers which have the potential to provide 
NewRiver with enhanced returns and in addition each asset provides significant 
opportunity to add value through targeted asset management initiatives. 
"We are highly confident that this portfolio will exceed NewRiver's minimum 
total return target of 15 per cent. given the attractive entry price, the low 
interest cost and the significant pre-identified active asset management 
opportunities.  Following this acquisition, NewRiver will have acquired 
approximately GBP150 million of retail assets in the last 12 months and 
demonstrates NewRiver's continuing ability to source attractive deals that 
compliment the Company's disciplined and well researched investment strategy." 
                                      ends 
For further information: 
 
NewRiver Retail 
                                                             Tel: 0203 328 5800 
David Lockhart, Chief Executive 
 
 
New River Retail 
                                                             Tel: 0203 328 5800 
Allan Lockhart, Executive Property Director 
 
 
Cenkos Securities 
                                                            Tel: 0207 397 8900 
Ian Soanes 
Max Hartley 
 
Pelham Bell Pottinger 
                                                       Tel: 0207 861 3232 
David Rydell 
Rosanne Perry 
 
 
 
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, led by David Lockhart, have 
more than 75 years' combined experience in UK commercial property markets. With 
more than GBP150 million of assets under management 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.newriverretail.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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