Portfolio Update (8144W)
06 Febbraio 2012 - 8:00AM
UK Regulatory
TIDMNRR
RNS Number : 8144W
NewRiver Retail Limited
06 February 2012
NewRiver Retail Limited
("NewRiver" or "the Company")
Portfolio Update
NewRiver Retail Limited (AIM and CISX: NRR), the UK REIT
specialising in value-creating retail property investment and
active asset management, today announces the following update on
portfolio activities.
Disposal of 23-24 Market in Great Yarmouth, Norfolk
NewRiver is pleased to announce that it has exchanged contracts
to sell the freehold interest of 23-24 Market Place, Great
Yarmouth, in Norfolk for a total consideration of GBP3.38 million
in cash to a private investor, reflecting a net initial yield of
approximately 8.25%.
In August 2011 when NewRiver acquired the property, it was let
to Life & Style Retail Ltd (in administration and no longer
trading from the premises) at GBP200,000 per annum. Simultaneously
with the purchase, NewRiver negotiated an agreement with Poundland,
with which NewRiver has a strong existing relationship, for a new
10 year lease at GBP295,000 per annum, reflecting a net initial
yield on purchase of 11.2%.
This opportunistic acquisition by NewRiver, located in a prime
retailing position, delivered value creation immediately upon
purchase and the unlevered IRR based on this disposal is 43.2% well
exceeding the Company's minimum geared target of 15%
Lease renewal at Northumberland Street, Newcastle Upon Tyne
NewRiver has signed a new ground lease for 125 years on its
Northumberland Street property in Newcastle upon Tyne. The property
was acquired by NewRiver in June 2010, for a total consideration of
GBP4.2m and reflecting a net initial yield of circa. 9.6%.
Simultaneous with the purchase, NewRiver part let the property to
Bank, the fashion retailer and part of the JD Sports Group. The
value of this property was further enhanced post acquisition when
the Company renewed H Samuel's short term lease, extending it to 10
years with no break clauses.
Newcastle is one of the UK's largest cities and the property is
located within a prime position on Northumberland Street,
Newcastle's premier retailing location. The property benefits from
strong pedestrian footfall being immediately adjacent to Fenwick
department store and close to major leading retailers such as Marks
& Spencer and Primark.
The property has already provided strong annual income returns
and now, through the successful negotiation and completion of the
new institutional grade ground lease, it has delivered further
capital value enhancement.
Development update at Skegness - The Hildreds Shopping
Centre
NewRiver has acquired the long leasehold interest of its
existing 39,500 sqft freehold asset attached to the Hildred's
Shopping Centre in Skegness. The leasehold interest has been
acquired from the Co-operative Group (CWS) Ltd for a total
consideration of GBP2.9 million reflecting a net initial yield of
9.5%. The weighted average lease expiry profile is 7 years as the
property is let to Home Bargains and the CWS has entered into a
short term lease.
This acquisition will release an immediate uplift in value
through the merger of the CWS's long leasehold interest with the
Company's freehold interest. Furthermore this acquisition opens up
a number of redevelopment opportunities to provide a larger anchor
retailer to the shopping centre,
Property Director at NewRiver, Allan Lockhart said:
"We are delighted to have completed these transactions as not
only do they generate significant profit and value creation, but in
respect of the acquisition of the Co-Operative asset in Skegness,
offer an exciting development opportunity. In particular the
purchase, simultaneous re-let and subsequent sale of the asset at
Great Yarmouth, alongside the property in Newcastle highlights the
expertise and agility of our highly skilled management team."
- ends -
For further information
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief Executive
Pelham Bell Pottinger Tel: 020 7861 3232
David Rydell/Rosanne Perry
Cenkos Securities Tel: 0207 397 8900
Ian Soanes/Max Hartley
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 assets
under management at circa GBP275 million 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
PFUDXLFBLLFBBBZ
Grafico Azioni Newriver Reit (LSE:NRR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Newriver Reit (LSE:NRR)
Storico
Da Lug 2023 a Lug 2024