Completion of Acquisition

RNS Number : 8731L

NewRiver Retail Limited

05 August 2011

 



5 August 2011

NewRiver Retail Limited ("NewRiver" or "the Company")

Completion of Acquisition

The Board of NewRiver (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, is pleased to announce that the Company has today completed the acquisition of the Four Retail Properties from Zurich Assurance Limited for approximately £68 million. The highlights of the acquisition are:

·     Net initial yield of 8.0%

·     122 tenancies providing good income diversification

·     Net lettable area of 502,500 square feet

·     Low vacancy rate of 3.3%

·     Approximately 60% of income let to food and value retailers

·     Total annual footfall of 19 million

·     94% of the rental income is let to multiple retailers

·     Low occupational costs resulting in sustainable rents

·     Key retail tenants include: The Co-operative, Poundland, TK Maxx and Boots

·     Significant asset management and development opportunities identified

·     Important new banking relationship established with Clydesdale Bank

·     Earnings per share and dividends per share enhancing in the first full financial year post acquisition

All defined terms in this announcement shall have the same meaning as in the NewRiver announcement made on 27 June 2011.

David Lockhart, Chief Executive Officer, said:

"This is NewRiver's largest acquisition to date and has been made possible in difficult markets by the support of new and existing shareholders for a major equity fundraising, again the Company's largest to date. NewRiver has now made £220 million of asset purchases in under two years and is demonstrating that its strategy of acquiring attractive high-yield, food anchored and value-led investments which benefit from our active asset management and risk controlled development skills is delivering for shareholders. We have immense ambition at NewRiver and are now looking forward to the next stage of the Company's development."

Arron Taggart, Regional Property Specialist at Clydesdale Bank commented: "We are pleased to have created a new banking relationship with NewRiver. NewRiver Retail's impressive and diverse property portfolio identifies it as a key player in the UK retail sector with confidence in the high street's long term outlook. We look forward to supporting the Company in future ventures."

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For further details contact:

NewRiver Retail Limited                                                                 Tel: [phone]

Paul Roy, Chairman                                                                                      

David Lockhart, CEO

Cenkos Securities plc                                                                     Tel: [phone]

Ian Soanes

Max Hartley

Kinmont Limited                                                                               Tel: [phone]

John O'Malley

Mat Thackery

Pelham Bell Pottinger                                                                      Tel: [phone]

David Rydell

Rosanne Perry

 

END

 

 

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