TIDMNRR
RNS Number : 2501I
NewRiver Retail Limited
24 March 2015
NewRiver Retail Limited
("NewRiver" or "the Company")
NewRiver announces GBP23.8 million of transactions
Three acquisitions totalling GBP18.26 million at an average net
initial yield of 8.7%,
and three disposals totalling GBP5.53 million at an average net
initial yield of 7.3%
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in
value-creating retail property investment, active asset management
and development announces three acquisitions totalling GBP18.26
million and three disposals totalling GBP5.53 million.
The Company continues to actively deploy capital in line with
its strategic objectives through the acquisition of one major
retail and leisure park and two separate retail warehouse
investments. Furthermore, the Company has demonstrated its
commitment to recycling capital with the sale of three retail units
following the successful delivery of key asset management
initiatives.
ACQUISITIONS TOTALLING GBP18.26 MILLION AT AN AVERAGE NET
INITIAL YIELD OF 8.7%
Lower Audley Street Retail Park, Blackburn
NewRiver has successfully completed the acquisition of Lower
Audley Street Retail Park, Blackburn from a private property
company for a total consideration of GBP14.6 million, reflecting a
net initial yield of 8.85%.
Located within the town's core retail warehouse provision, the
retail park comprises 114,000 sq. ft. of retail and leisure space
and a 403 space car park, and trades adjacent to major national
retailers including ASDA, B&Q, TK Maxx, Matalan and Next.
The retail park itself offers an extensive range of food,
fashion, electronics, home and leisure outlets including B&M,
Maplin, Mothercare, Halfords, Burger King, Chiquitos, Frankie &
Benny's and the town's only enclosed ice rink.
With 100% occupancy, the park will provide NewRiver with
attractive cash on cash returns underpinned by a solid income
stream, with affordable rents ranging from GBP6 per sq. ft. to
GBP12 per sq. ft. and a weighted average lease to expiry ("WALE")
of 5.35 years.
NewRiver has identified a range of asset management
opportunities to enhance the capital value by improving the retail
offer, potential for retail extensions and restaurant pods and
improving the income security length through lease re-gears.
Sealand Road, Chester
NewRiver has acquired the freehold interest of a 10,591 sq ft
retail unit let to Staples from a local authority pension fund for
GBP2.1 million, reflecting a net initial yield of 8.24%. Staples
has a 25 year lease on the unit expiring in 2017 at a rent of
GBP183,000 pa.
The unit is ideally located 1.2 miles north west of Chester City
Centre, and is adjacent to Chester's principal retail park which is
anchored by John Lewis at Home. The Staples unit, as well as
benefiiting from a 40 space car park, comes with open A1 planning
consent. NewRiver has the option to either redevelop to provide
three smaller units or to re gear the existing lease with
Staples.
Great Eastern Square, Felixstowe
NewRiver has acquired Felixstowe's only retail warehouse unit, a
17,180 sq. ft. unit let to Homebase with 5.75 years remaining on
the lease, from a private investment company for GBP1.56 million
reflecting a net initial yield of 7.84%.
Located in the heart of the seaside town of Felixstowe, Suffolk
and providing the principal retail offer for the surrounding area,
Great Eastern Square is situated in a prominent position close to
the town centre and opposite a large Co-operative food store.
NewRiver has identified opportunities to add value through
widening of the planning consent to allow a broader range of retail
uses and given the passing rent equates to a modest GBP7.50 per sq
ft, the property offers realistic prospects of rental growth.
DISPOSALS TOTALLING GBP5.53 MILLION AT AN AVERAGE NET INITIAL
YIELD OF 7.3%
97 Dolphin Shopping Centre, Poole
NewRiver has completed the sale of a 34,705 sq. ft. retail unit
within the Dolphin shopping centre in Poole, let to Wilkinsons, to
Legal and General for GBP2.3 million reflecting a yield of 7.27%
resulting in an IRR of 15.5% since acquisition in 2010.
Halfords, Paisley
NewRiver has sold a 20,100 sq. ft. unit, occupied by Halfords,
for GBP1.8 million, at a net initial yield of 8.44% to a private
investor reflecting a levered profit on cost of 56%. The Company
acquired the Unit as part of the Linear portfolio in June 2014 for
GBP1.4 million at a net initial yield of 10.93%.
40 Fishergate, Preston
The Company completed the sale of a 10,000 sq. ft. former HSBC
bank in Preston for GBP1.43 million to a private investor at a
yield of 5.96%.
NewRiver acquired the freehold of the former bank in April 2014
for GBP0.7 million and subsequently secured planning consent to
convert the building to a city centre convenience store which the
Company simultaneously pre-let to J Sainsbury on a 15 year lease.
The sale reflects an attractive profit for the Company, which after
accounting for GBP0.3 million of capital expenditure, results in an
unlevered profit on cost of 45%.
Allan Lockhart, Property Director at NewRiver Retail said:
"As we approach our 31(st) March year end, we are pleased to
complete these opportunistic purchases at a blended yield of 8.7%
extending our selective investment into the retail warehouse
sector. During our financial year we have deployed our
shareholders' capital into a total of GBP332 million of
acquisitions of which 89% have been shopping centres and we have
disposed of GBP40.2 million of assets. We remain committed to
recycling assets following completion of our asset management
strategies with all of the asset sales announced today, sold at a
blended yield of 7.3%, delivering attractive financial
returns."
For further information
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief
Executive
Mark Davies, Finance
Director
Bell Pottinger Tel: 020 3772 2500
David Rydell/David Bass/James
Newman
Liberum Tel: 020 3100 2000
Richard Crawley/Jamie
Richards
About NewRiver
NewRiver Retail Limited is an AIM listed REIT. The Company is a
specialist real estate investor and asset manager focused solely on
UK retail with a particular focus on food and value retailing.
NewRiver Retail was named Property Company of the Year - Retail
& Leisure at the Estates Gazette Awards at the close of
2014.
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 one of the UK's
largest shopping centre owner/managers with assets under management
of GBP811 million principally comprising 29 UK wide shopping
centres, further nationwide retail assets and a portfolio of 202
public houses principally suitable for conversion to alternative
uses. The portfolio has 1,384 occupiers, a total of over 5.4
million sq ft, total annual footfall of over 122 million and a
retail 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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