NewRiver REIT PLC Acquisition of Hollywood Retail & Leisure Park (2342U)
11 Luglio 2018 - 8:00AM
UK Regulatory
TIDMNRR
RNS Number : 2342U
NewRiver REIT PLC
11 July 2018
NewRiver REIT plc
("NewRiver" or the "Company")
Acquisition of Hollywood Retail & Leisure Park,
Barrow-in-Furness, for GBP15.3 million
NewRiver is pleased to announce the acquisition of Hollywood
Retail & Leisure Park, Barrow-in-Furness, from an institutional
investor for GBP15.3 million.
The asset offers NewRiver a number of opportunities to extract
further value, including the immediate conversion of two existing
units to introduce a 20,000 sq ft store let to Aldi on a 20 year
lease with RPI rental increases. Including the Aldi store, the
retail park has a weighted average unexpired lease term of 8.3
years, an affordable and sustainable average rent of GBP11.36 per
sq ft, and the pricing represents an attractive net initial yield
of 8.7%.
The acquisition comprises a ten-unit 124,400 sq ft retail and
leisure park providing 665 free car parking spaces. Aldi will join
an occupier line-up consisting of quality national retailers and
leisure operators including TK Maxx, Currys PC World, Dunelm,
Nuffield Health and a six-screen Vue cinema. The asset will be 100%
occupied following the introduction of Aldi later this year.
The asset is conveniently located in the main retail park
concentration in Barrow-in-Furness, a town with a large catchment
and limited retail competition, and will provide the primary
discount food offer for the community following the introduction of
Aldi. Barrow-in-Furness benefits from an employment level above
national and regional averages, and BAE Systems, the dominant local
employer with a workforce of more than 8,000 people, was awarded a
major GBP2.4 billion government contract in May 2018 to build the
next generation of Royal Navy submarines in the town, which will
lead to further investment and job creation.
Allan Lockhart, Chief Executive commented: "Hollywood Retail
& Leisure Park is a high quality asset acquired for a very
attractive entry price, and presents some immediate asset
management and development opportunities, including the
introduction of a new 20,000 sq ft Aldi, let on a long lease.
Barrow-in-Furness has a large catchment, an ambitious Local Plan
and favourable economic prospects, especially following the
government's recent recommitment to BAE Systems' shipyard in the
town. Since the start of this financial year we have invested over
GBP140 million across our core sectors of community shopping
centres, retail parks and community pubs at a blended initial yield
of 13% demonstrating our disciplined approach to capital allocation
and our commitment to deliver growing and sustainable cash returns
to shareholders."
For further information
+44 (0)20 3328
NewRiver REIT plc 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Will Hobman (Head of Investor
Relations)
Finsbury +44 (0)20 7251 3801
Gordon Simpson
About NewRiver
NewRiver REIT plc (ticker: NRR) is a premium listed REIT on the
London Stock Exchange and a constituent of the FTSE 250 and EPRA
indices. The Company is a specialist real estate investor, asset
manager and developer focused solely on the UK retail and leisure
sector.
Founded in 2009, NewRiver is one of the UK's largest
owner/managers of convenience-led community shopping centres with a
property portfolio of GBP1.4 billion principally comprising 34 UK
wide shopping centres together with further nationwide retail and
leisure assets. The portfolio totals 8 million sq ft with over
2,000 occupiers, an annual footfall of 150 million and a retail
occupancy rate of 97 per cent. Visit www.nrr.co.uk for further
information.
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END
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