Specialist real estate investment trust (REIT), NewRiver Retail, has paid more than £69m for a 13-site asset and development portfolio.
Acquired from an un-named foodstore operator, the Ramsay Retail Warehouse Portfolio includes nine value-led retail parks and four development sites each with approved planning consents and pre-let interest from retailers.
Claimed to be the UK’s leading value-creating retail property investment platform in the sector, NewRiver confirmed the £69.1m purchase is being partly funding by its recent 50,000,000 share issue, expected to raise at least £150m.
In a statement the REIT said the purchase was also in line with its strategy “of acquiring carefully selected retail assets that will generate attractive cash on equity returns with identifiable opportunities to unlock additional value through the company’s active asset management and risk-controlled development”.
The portfolio comprises 462,916 sq ft leased to 36 occupiers and all located close to high performing foodstores. With a 97 per cent occupancy rate the retail units reportedly generate £5,607,009 each year from leading brands such as TK Maxx, Argos, Poundstretcher, B&M, Matalan and Boots.
The second half of the portfolio is made up of several development sites carrying 300,289 sq ft of retail planning consent. NewRiver says it is already speaking to a number of potential tenants including B&M, Wickes, Pets at Home and Sports Direct.
“We are delighted to announce the Ramsay Retail Warehouse Portfolio acquisition which will be funded by the proceeds from our recent fundraise, the result of which reflects the great support we continue to receive from new and existing shareholders for the company’s growth strategy,” commented NewRiver Chief Executive, David Lockhart.
“This attractive yielding portfolio benefits from a strong retailing covenant leading to a secure and sustainable income stream and presents an immediate opportunity for NewRiver to pursue a range of value-enhancing asset management and risk controlled development initiatives.”
Lockhart said he was “confident this acquisition will add significant long term value for our shareholders”.
His company’s existing UK-wide portfolio contains £848m worth of assets, made up of 29 shopping centres, high street assets and retail warehouse sites, and a collection of 202 pubs and licensed premises destined for conversion to alternative uses. New River is now the third largest owner-manager of shopping centres in the country.
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