Disposal of Poole Retail Park

RNS Number : 5502W

NewRiver REIT PLC

23 December 2021

 

NewRiver REIT plc

("NewRiver" or the "Company" or the "Group")

Disposal of Poole Retail Park for £58.0 million

NewRiver and BRAVO Strategies III LLC ("BRAVO") are pleased to announce the completion of the disposal of Poole Retail Park in Dorset for £58.0 million (NRR share: £5.8 million). This pricing represents a net initial yield of 6.6% (based on assumed purchaser's costs of 1.8%), a 7.4% premium to the latest valuation and is 30% higher than when NewRiver and BRAVO acquired the asset in October 2019. Since acquisition the asset has generated an IRR of 21.6% (excluding the promote fee).

In the two years since acquisition NewRiver has completed several successful initiatives at the Retail Park. These include securing a 10 year lease extension and over 60% rental uplift with Homebase, which had undergone a CVA prior to our acquisition of the Retail Park. We also agreed new leases with existing occupiers Boots and Next and introduced Bensons for Beds to the park on a 10 year lease, replacing a former Laura Ashley unit. In February of this year we also completed a new 10 year lease for a 30,400 sq ft unit to Sports Direct, replacing a former DW Sports unit.

Allan Lockhart, Chief Executive commented : "This disposal demonstrates the strong returns that can be generated from our experienced asset management platform through capital partnerships. In a short space of time we have completed numerous leasing transactions at the Retail Park which have improved the customer offer and supported the asset's income and valuation. We are delighted to have secured such good pricing on this disposal which demonstrates the inherent liquidity in our portfolio."

For further information

NewRiver REIT plc			[phone]
Allan Lockhart (Chief Executive) Will Hobman (Chief Financial Officer)
Emily Meara (Head of Investor Relations)

Finsbury				[phone]
Gordon Simpson James Thompson

About NewRiver

NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK.

Our £0.7 billion portfolio covers 8 million sq ft and comprises 29 community shopping centres and 17 conveniently located retail parks. We have hand-picked our portfolio to focus on occupiers providing essential goods and services and to support the development of thriving communities across the UK, while deliberately avoiding structurally challenged sub-sectors such as department stores and mid-market fashion. 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 stable income and capital growth to our investors.

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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