NEWRIVER REIT PLC

M&A Activity • Jun 22, 2016

National Storage Mechanism | Additional information

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RNS Number : 8887B

NewRiver Retail Limited

22 June 2016

NewRiver Retail Limited

("NewRiver" or "the Company")

£20 million acquisition of Cuckoo Bridge Retail Park, Dumfries

NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces that it has completed the acquisition ('The Acquisition') of Cuckoo Bridge Retail Park, Dumfries off-market from a large listed property company for a total consideration of £20.2 million. The acquisition equates to a net initial yield of 7.05%, an equivalent yield of 7.87% and a reversionary yield of 7.93%, with net rental income at purchase of £1.5 million per annum.

Cuckoo Bridge Retail Park is the dominant retail park in Dumfries, prominently located in close proximity to the A75. The asset has a strong catchment area, ideally located within a 30-minute drive time of Dumfries and the surrounding areas to the north and west, which has a population of nearly 90,000. 

The retail park is 100% occupied and comprises 130,000 sq ft of income generating space across seven retail units with a weighted average lease expiry of 8.32 years and 550 car park spaces.

The asset benefits from prime positioning, adjacent to a 24 hour Tesco Supermarket which provides the main food offer for the town. Anchored by Homebase, the retail park also offers a mix of quality retailers including: Dunelm, Poundstretcher, Laura Ashley, B&M, KFC and Costa Coffee.

This strategic acquisition presents a range of value-enhancing asset management and development opportunities which will drive income and capital growth. The Acquisition has been funded using existing cash resources. Retail warehouses account for 12% of NewRiver's £1.24 billion portfolio.

Allan Lockhart, NewRiver Property Director, commented:

"We are delighted to announce the acquisition of Cuckoo Bridge Retail Park, extending our growing and sustainable income stream, underpinned by long-term covenants. The Acquisition demonstrates our ability to grow the portfolio through our carefully selected acquisitions in line with our focused business model.

This favourably located asset is well established in the local community, providing every day necessities for the local population. Cuckoo Bridge presents excellent opportunities to generate attractive cash on equity returns by driving income and capital growth through the Company's active asset management and risk-controlled development." 

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NewRiver Retail Limited  David Lockhart, Chief Executive Mark Davies, Finance Director	Tel: 020 3328 5800
Bell Pottinger David Rydell / David Bass / James Newman / Eve Kirmatzis	Tel: 020 3772 2500
Liberum Richard Crawley / Jamie Richards	Tel: 020 3100 2000
Peel Hunt LLP Capel Irwin	Tel: 020 7418 8900

About NewRiver

NewRiver Retail Limited is an AIM listed REIT. The Company is a specialist real estate investor, asset manager and developer focused solely on the UK retail sector. NewRiver Retail was named Property Company of the Year at the 2016 Property Week Awards.

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 £1.2 billion principally comprising 33 UK wide shopping centres, further nationwide retail assets and a portfolio of 358 pubs with retail and mixed-use extension opportunities. The portfolio totals over 7 million sq. ft. with over 1,840 occupiers, an annual footfall of 150 million and a retail occupancy rate of 97 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

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