NewRiver Retail Limited Acquisition (6209U)
04 Dicembre 2013 - 8:00AM
UK Regulatory
TIDMNRR
RNS Number : 6209U
NewRiver Retail Limited
04 December 2013
NewRiver Retail Limited
("NewRiver" or "the Company")
NewRiver acquires GBP24m shopping centre portfolio at 10.4% net
initial yield
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in
value-creating retail property investment and active asset
management, announces it has acquired a portfolio of three shopping
centres for a total consideration of approximately GBP24 million
(the "Portfolio") from Zolfo Cooper, acting as administrator on
behalf of special purpose vehicles controlled by Clydesdale
Bank.
NewRiver was appointed asset manager of the Portfolio by Zolfo
Cooper when it was placed into administration in December 2012. The
asset management appointment provided the Company with the
opportunity to comprehensively evaluate the likely future
performance of the assets. In line with the Company's proven
business strategy, NewRiver has identified a number of asset
management and development initiatives to significantly enhance the
income and capital value of the assets.
The Portfolio was acquired at an attractive net initial yield of
10.4% and comprises the 99,500 sq ft Newkirkgate Shopping Centre in
Edinburgh; the 183,046 sq ft Beacon Centre in North Shields, Tyne
& Wear; and the 25,000 sq ft La Porte Precinct in Grangemouth,
near Falkirk. The Portfolio offers an attractive combined weighted
average lease expiry of approximately 5.3 years and a total
lettable area in excess of 300,000 sq ft. The three centres
comprise 77 tenancies providing excellent income diversification.
The Portfolio features a range of high quality national retailers
including Wilkinson, Boots, WH Smith, Home Bargains and New Look.
With a high occupancy rate of 94%, the Portfolio benefits from a
stable rental income stream.
The acquisition is being funded through the Company's BRAVO II
joint venture partnership (a fund advised and managed by Pacific
Investment Management Company LLC). Both parties are taking a 50
per cent equity stake in the acquisition and the joint venture will
benefit from the Portfolio's projected high yielding income
returns. The acquisition was funded from existing cash resources
and the joint venture has Credit Committee approval for a debt
facility that it intends to draw down on in due course.
Allan Lockhart, Property Director at NewRiver Retail, said:
"After nearly 12 months of managing these assets on behalf of
the Administrator, we are delighted to have acquired this Portfolio
at an attractive yield of over 10%. The three centres are an
excellent addition to our high yielding and diversified portfolio
that is predominately focused on everyday non-discretionary
retail.
Following our oversubscribed equity fundraise in July, we have
undertaken four major transactions, the majority of which have been
off market, totalling circa GBP200 million at an average yield of
11%. This demonstrates our ability to deploy our shareholders
capital with speed but without compromising our investment
strategy."
-Ends-
For further information
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief Executive
Mark Davies, Finance Director
Pelham Bell Pottinger Tel: 020 7861 3232
David Rydell/Guy Scarborough/Charlotte
Offredi
Cenkos Securities Tel: 020 7397 8900
Max Hartley/Ian Soanes
Liberum Capital Tel: 020 3100 2000
Shane Le Prevost/Tim Graham
About NewRiver
NewRiver Retail is a specialist Aim listed REIT focused solely
on the UK food and value retail market and is fast-becoming the
leading value-creating property investment platform in the
sector.
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 fourth
largest Shopping Centre owner by number with assets under
management of GBP440 million comprising 24 UK wide shopping
centres, 16 high street retail units and two supermarkets. The
portfolio has in excess of 950 occupiers, a total of 3.8 million
square feet, total annual footfall of over 105 million and an
occupancy rate of 96 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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