NewRiver REIT PLC Final disposals within Napier 50/50 Joint Venture (1176E)
28 June 2023 - 4:00PM
UK Regulatory
TIDMNRR
RNS Number : 1176E
NewRiver REIT PLC
28 June 2023
NewRiver REIT plc
("NewRiver" or the "Company")
Final disposals within Napier 50/50 Joint Venture
NewRiver and PAF Lux SCA, SICAV RAIF, acting on behalf of its
compartment PAF - Bravo III Compartment ("BRAVO") are pleased to
announce the completion of the disposal of Kittybrewster Retail
Park in Aberdeen and Glendoe and Telford Retail Parks in Inverness
for GBP62.6 million (NRR share: GBP31.3 million) to RI UK 1
Limited. The assets generated net rental income of GBP5.7 million
(NRR share: GBP2.9 million) during FY23 and had a gross asset value
of GBP64.4 million (NRR share: GBP32.2 million) at 31 March 2023.
The sale proceeds will be used to reduce NewRiver's net debt as at
31 March 2023 by GBP31.8 million (net cash receipt of GBP19.8
million and repayment of secured debt of GBP12.0 million) to
GBP169.5 million on a proforma basis which reduces NewRiver's LTV
as at 31 March 2023 to 30.3% on a proforma basis.
The disposal comprises the final properties in the Napier Joint
Venture, bringing the total sale receipts from Napier to GBP76.0
million, reflecting a blended net initial yield of 7.4%. Total
receipts are 26% higher than the price paid when NewRiver and BRAVO
acquired the portfolio in June 2019 from a UK Institution for
GBP60.5 million, which reflected a blended net initial yield of
9.8%. Since acquisition the Napier Joint Venture has generated an
IRR of 16% and following the disposal of Napier, NewRiver and BRAVO
continue to own two assets within a separate venture.
Allan Lockhart, Chief Executive commented: "The Napier Joint
Venture is a great example of why we like retail parks and working
in capital partnerships. Over our four years of ownership and
management, we have been able to crystallise compelling returns for
ourselves and our partner by utilising our specialist retail
platform at each stage of the process, all the way from disciplined
stock selection to successful delivery of asset management plans in
order to secure a successful exit. In addition, the disposal means
that the strength of NewRiver's balance sheet position is further
improved, with proforma LTV now at 30.3% and significant cash
resources giving maximum flexibility and optionality around capital
allocation."
NewRiver has completed several successful initiatives across the
portfolio, with highlights including:
Kittybrewster Retail Park, Aberdeen
-- Let 10,000 sq ft unit which was vacant at acquisition to Wren Kitchens
on 10 year lease
-- Following Harveys administration in 2020, quickly re-let 10,000
sq ft unit to Dreams on 10 year term
-- Introduced JD Sports to the park in a 9,600 sq ft unit on a 10
year lease
-- Secured new 10 year term at lease renewal with TK Maxx lease on
16,700 sq ft
-- Actioned historic Halfords rent review shortly after acquisition
increasing rent by 34%
-- Increased McDonald's rent by 11% at rent review
-- Re-geared Oak Furnitureland on new 10 year lease, extending expiry
from 2024 to 2030
Glendoe and Telford Retail Parks, Inverness
-- Surrendered Curry's lease (not trading from unit at acquisition)
on 20,000 sq ft unit, for a significant premium and simultaneously
completed new lettings to Bensons for Beds and Food Warehouse,
having secured planning consent for food, on 10 year terms
-- Actioned landlord break on Poundstretcher and re-let 15,000 sq
ft unit to Poundland on new 5 year lease
-- Completed a reversionary lease with B&M adding 10 years to their
existing term resulting in a June 2034 expiry
-- Let 10,000 sq ft void unit at acquisition to the Department for
Work & Pensions
-- Re-geared Oak Furnitureland and Go Outdoors on new 10 year leases
Units at Kingsway East Retail Park, Dundee (Sold in March
2021)
-- Sold property to a special purchaser, an existing tenant, at premium
pricing having agreed a deal with an alternative tenant to occupy
their unit. The property also included a 34,500 sq ft unit let
to B&M
Wakes Retail Park, Newport, Isle of Wight (Sold in March
2022)
-- Downsized Curry's from 30,000 to 15,000 sq ft in return for a surrender
premium, extending their term by 5 years with the remainder, on
which food planning consent was obtained, re-let to Food Warehouse
on a 10 year term
-- Completed a lease re-gear with Pets at Home, extending their lease
term by 5 years
For further information
+44 (0)20 3328
NewRiver REIT plc 5800
Allan Lockhart (Chief Executive)
Will Hobman (Chief Financial Officer)
Lucy Mitchell (Communications
& Investor Relations)
+44 (0)20 7251
FGS Global 3801
Gordon Simpson
James Thompson
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
the law of England and Wales by virtue of the European Union
(Withdrawal) Act 2018. This announcement has been authorised for
release by the Board of Directors.
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing and developing
resilient retail assets throughout the UK.
Our GBP0.6 billion UK wide portfolio covers 7 million sq ft and
comprises 26 community shopping centres and 14 conveniently located
retail parks occupied by tenants predominately focused on essential
goods and services. Our objective is to own and manage the most
resilient retail portfolio in the UK, focused on retail parks, core
shopping centres, and regeneration opportunities in order to
deliver long-term attractive recurring income returns and capital
growth for our shareholders.
NewRiver has a Premium Listing on the Main Market of the London
Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further
information.
LEI Number: 2138004GX1VAUMH66L31
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