Disposal of Bramley Shopping Centre, Leeds

RNS Number : 4703O

NewRiver Retail Limited

07 August 2014

 



NewRiver Retail Limited

("NewRiver" or "the Company")

NewRiver sells Bramley Shopping Centre, Leeds, for £18.5m reflecting 7.2% net initial yield

NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces it has exchanged contracts for the sale of Bramley Shopping Centre, Leeds, for a total consideration of £18.5 million reflecting a net initial yield of 7.2% to Rockspring Property Investment Managers on behalf of Rockspring UK Value 2 LP.

The sale of Bramley Shopping Centre demonstrates the Company's successful business strategy of acquiring assets at attractive yields and delivering active asset management initiatives in order to significantly enhance and realise their value through sale.

NewRiver acquired the Centre as part of portfolio of five shopping centres (CReAM portfolio) in 2010. The sale price is 1.4% above the March 2014 year end valuation.

Bramley Shopping Centre comprises 121,342 sq ft of retail space across 54 units let to a range of retailers including Tesco, Farmfoods, Boots, Bright House, Greggs and Pound Stretcher.

During its ownership, NewRiver delivered on its active asset management initiatives completing 20 new lettings, lease re-gears and renewals with key retailers including The Co-Operative Pharmacy, The Post Office, Pizza Hut, Bright House and The Money Shop. NewRiver secured an uplift in the rent review for the anchor Tesco supermarket resulting in a 17% increase in the annual rent rising from £414,000 to £487,000. The Company installed free income-generating Cloud wifi and an Amazon Locker.

Allan Lockhart, Property Director at NewRiver Retail, said:

"The sale of Bramley Shopping Centre is an excellent example of NewRiver's ability to source and acquire retail real estate with significant enhancement opportunities and use our active asset management expertise to increase its value. We are delighted with the performance of the asset and in line with our proven business strategy we look forward to recycling the surplus capital generated into new and exciting projects."

-Ends-

For further information

NewRiver Retail Limited  David Lockhart, Chief Executive Mark Davies, Finance Director	Tel: [phone]
Bell Pottinger David Rydell/Guy Scarborough/James Newman	Tel: [phone]
Liberum Tim Graham/Simon Atkinson/Jamie Richards	Tel: [phone]

About NewRiver

NewRiver Retail Limited is an AIM listed REIT. The Company is a specialist real estate investor and asset manager focusing solely on UK retail with a particular focus on food and value retailing.

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 the UK's third largest Shopping Centre owner by number with assets under management of approximately £600 million principally comprising 24 UK wide shopping centres, 18 high street assets, 1 supermarket and a portfolio of 202 public houses principally suitable for conversion to alternative uses. The portfolio has 1,118 occupiers, a total of 4.6 million sq ft, total annual footfall of over 100 million and a retail occupancy rate of 95 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

 

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