TIDMNRR
RNS Number : 2825E
NewRiver Retail Limited
05 April 2011
5 April 2011
NewRiver Retail Limited ("NewRiver" or "the Company")
Signing of MOU for refurbishment and development of The Forum
Shopping Centre, Wallsend
Expansion of development activity within existing portfolio
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in
value-creating retail property investment and active asset
management, today announces the following update on its risk
controlled development activities.
The Company has signed a Memorandum of Understanding (MOU) with
North Tyneside Local Authority for a significant refurbishment and
extension of The Forum Shopping Centre in Wallsend, Tyne &
Weir.
The proposed redevelopment options include comprehensive
refurbishment of the current shopping centre, a new 55,000 sq ft
anchor food store and a further 65,000 sq ft of additional retail
space that creates new and larger units. In conjunction with the
local authority, which owns the key adjacent sites, NewRiver
intends to create a new town centre that will draw a wider range of
retailers and restaurant operators to the town.
It is the intention to secure a pre-let for the food store from
a major retailer before commencing redevelopment and the Company
has already initiated discussions with a number of major
supermarket groups in this regard. NewRiver estimates that between
350 and 500 jobs will be created by the project which also enhances
town centre car parking, upgrades the street landscaping and
improves local transport connections. It is expected that a
planning application will be submitted in the third quarter of
2011.
Additionally, in Bramley, Leeds, the Company has gained planning
permission for a 10,000 sq ft extension to the main town centre
retail scheme. In Fareham, Hampshire, planning permission has been
granted for 25,500 of additional retail space. Shopping centre
assets in East Ham, east London, Erdington, West Midlands and
Market Deeping near Peterbrough are currently subject to pre
planning consultation for refurbishment and extension, totalling
115,000 sq ft of new space. In Burgess Hill, West Sussex, a major
110,000 sq ft project is at pre-planning stage and discussions with
food and non-food retailers regarding pre-lets are advancing
well.
In Abingdon, Oxon, where NewRiver is advising Scottish Widows
Investment Partnership (SWIP), the owner of the main Abbey Shopping
Centre, The Vale of White Horse District Council, announced on 23
March 2011 that it had reached agreement for a planned GBP53
million redevelopment of the Abingdon Charter area and the Abbey
Shopping Centre, in conjunction with SWIP. It is anticipated that,
subject to planning permission, development will commence in 2013
and NewRiver will manage the entire development on behalf of
SWIP.
In total, the Company is currently engaged in a significant
risk-controlled development and refurbishment programme that,
including joint-owned and managed shopping centres, extends to
approximately 500,000 sq ft across eight separate centres
throughout the UK. The Company believes that these projects - which
are within the Company's existing income-producing portfolio and
will be led by pre-leasing agreements - will generate significant
value over the medium term.
Since December 2009, NewRiver has completed seven major
acquisitions, totalling approximately GBP150m, making it one of the
most active specialist UK REITS. The Company currently owns or
manages a total of 1.3 million sq ft of retail space with more than
350 tenants. The Company's active asset management strategy has
already resulted in approximately 50 positive leasing initiatives
which have extended the portfolio's Weighted Average Lease length
to 7.4 years and reduced total void rate to just 4.5 per cent at
end March 2011.
The portfolio benefits from strong covenants with the largest
ten tenants made up of leading retail groups New look, Wilkinson,
Tesco, Superdrug, Peacocks, Co-operative Retail Services,
Sainsbury's, TK Maxx, Next and Iceland. Other major tenants include
Lidl, Argos, H Samuel and Bank.
The Company recently announced its first disposals as part of
its strategy of recycling equity where significant returns can be
crystallised.
NewRiver continues to be active in seeking further acquisitions
focused on assets with food and value-led retailers, food anchored
shopping centres and in-town large space retail units. The Company
benefits from the support of two major banking relationships,
Santander and HSBC, as well as from its joint venture with Morgan
Stanley.
The Company expects to announce its financial results for twelve
months ended 31 March 2011 on 1 June 2011. Key performance
indicators are in line with market expectations.
- ends -
For further information
NewRiver Retail Limited Tel: 020 3328 5808
David Lockhart, Chief Executive
Pelham Bell Pottinger Tel: 020 7861 3232
David Rydell/Rosanne Perry
Cenkos Securities
Ian Soanes/Max Hartley Tel: 020 7397 8900
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 GBP165 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.nrr.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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