Acquisition

RNS Number : 8143Q

NewRiver Retail Limited

12 November 2012

 



NewRiver Retail Limited

("NewRiver" or "the Company")

NewRiver Retail acquires two units and secures a 25-year lease agreement with Primark in Golden Square Shopping Centre, Warrington

NewRiver Retail Limited (AIM and CISX: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, today announces that it has completed the acquisition of two large retail units in the Golden Square Shopping Centre in Warrington, Cheshire, in a move that brings value retailer Primark into the Company's portfolio.

In an innovative transaction NewRiver acquired the long leasehold interest of the New Look store for a total consideration of £3.47 million from Standard Life and simultaneously acquired a long leasehold interest for nil consideration in the adjacent vacant retail unit from Warrington Retail Partnership Limited ("WRPL"), a joint venture between Warrington Council, Lend Lease and Legal & General, owners of the Centre.

NewRiver will amalgamate and refurbish the two retail units to provide a single 56,000 sq ft unit for leading retailer and high-street favourite Primark. NewRiver has signed a lease with Primark for a term of 25-years at an annual rent of £475,000.

New Look is scheduled to vacate shortly after Christmas 2012 and move into the former Zara unit within the shopping centre. Construction will then commence in January 2013 with Primark taking occupation in April 2013.

Completion of the acquisition and lease agreement highlights NewRiver's ability to identify and execute significant value-enhancing opportunities in the retail sector.

Property Director at NewRiver Retail, Allan Lockhart said:

"We are delighted to welcome Primark to the NewRiver Retail portfolio. We have formed an excellent working relationship with Lend Lease and together have achieved an excellent outcome that brings the first Primark store to both Golden Square Shopping Centre and to Warrington.

"This acquisitiondelivers on our commitment to both value-creation and to meeting consumer demand for value, range and convenience. Moreover, the transaction provides an attractive cash on cash return of 15% per annum secured against one of Europe's leading and financially most successful retailers."

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For further information

NewRiver Retail Limited  David Lockhart, Chief Executive	Tel: [phone]
Pelham Bell Pottinger David Rydell/Guy Scarborough	Tel: [phone]
Cenkos Securities Ian Soanes/Max Hartley	Tel: [phone]
Investec Bank plc Garry Levin/David Anderson	Tel: [phone]

About NewRiver Retail

NewRiver Retail Limited is a specialist REIT focused solely on the UK retail sector 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 engage with retailers, stakeholders and consumers.

With assets under management of over £275 million comprising 16 UK wide shopping centres, 16 high street retail units and two supermarkets, the NewRiver Retail portfolio has a total square footage of 1.9m, a combined annual footfall of over 45 million and a total of 533 occupiers boasting a 96% occupancy rate.

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 Retail'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.nrr.co.uk 

 

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