Acquisition

RNS Number : 4444N

NewRiver Retail Limited

11 June 2010

 



NewRiver Retail Ltd

("NewRiver" or "the Company")

Acquisition

NewRiver Retail Limited, the specialist value-creating retail property investment and asset management company, is pleased to announce that it has exchanged contracts to acquire the leasehold interests of 49/53 Northumberland Street in Newcastle Upon Tyne. The property has been acquired from the Receivers to Stylo Barratt Properties for a total consideration of £4.2m, reflecting a net initial yield of circa. 9.60%.  The property provides approximately 20,000sqft of retailing space subdivided into 2 units.

Newcastle is one of the UK's largest cities and the property is located within a prime position on Northumberland Street, Newcastle's premier retailing location.  The property benefits from strong pedestrian footfall being immediately adjacent to Fenwicks department store and close to major leading retailers such as Marks & Spencer, Primark and H&M.

Simultaneous with the acquisition of the property, contracts have been exchanged to let the larger unit, formerly occupied by Stylo Barratt to Bank Fashions Limited, a wholly owned subsidiary of J D Sports Plc.  Bank Fashion Limited have 65 stores in the UK and target the young aspirational fashion market.  The smaller unit is let to H. Samuel.

Allan Lockhart, Director of NewRiver Capital Limited said:

"We are delighted to have been able to acquire this high quality retail asset in one of the UK's leading retailing streets at a very attractive yield.  The new letting to Bank Fashion Limited reflects current market rental levels.

Not only will this acquisition provide excellent annual income returns, but will offer further capital value enhancement through the release of significant marriage value from a re-gear of the long leasehold interest."

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For further information:

NewRiver Retail Limited

Serena Tremlett                                                                                                               Tel: [phone]

NewRiver Capital Limited                                                                           

David Lockhart                                                                                                                  Tel: [phone]

Cenkos Securities                                                                                                            Tel: [phone]

Ian Soanes

Max Hartley

Pelham Bell Pottinger                                                                                                   Tel: [phone]

David Rydell

Rosanne Perry

About NewRiver

NewRiver Retail Limited is a specialist real estate investor and asset manager with a particular focus on the UK retail sector. NewRiver Retail is advised on property matters by its wholly-owned subsidiary, NewRiver Capital Limited, whose management team, led by David Lockhart, have more than 50 years combined experience in UK commercial property markets. 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. It is NewRiver's intention to become one of the leading sector-focused value-creating property investment businesses operating in the UK retail sector. The Company was founded in 2009 and its shares were admitted to London's AIM and Channel Islands Stock Exchange (CISX) in September of the same year.

For more information on NewRiver, please visit www.newriverretail.com and www.newrivercapital.co.uk 

 

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