NewRiver REIT PLC Acquisition of The Moor, Sheffield in a JV (6522P)
19 Febrero 2021 - 1:00AM
UK Regulatory
TIDMNRR
RNS Number : 6522P
NewRiver REIT PLC
19 February 2021
NewRiver REIT plc
("NewRiver" or the "Company")
Acquisition of The Moor, Sheffield in a Joint Venture with
BRAVO
NewRiver is pleased to announce that its joint venture with
BRAVO Strategies III LLC ("BRAVO") in which it holds a 10% stake
has exchanged contracts to acquire The Moor, a 28 acre estate in
Sheffield city centre, from CEP ASI UKPF Nominee 1 Limited and CEP
ASI UKPF Nominee 2 Limited, for total consideration of GBP41.0
million, representing a capital value of GBP60 per sq ft.
The Moor estate is located in Sheffield city centre and is close
to the city's railway station, council offices, and both Sheffield
University and Sheffield Hallam University. It is one of
Sheffield's designated city centre 'quarters' and has benefitted
from significant private and public sector investment, which has
established The Moor as the city's primary retail and leisure
destination.
Centred around an open-air pedestrianised thoroughfare, the
estate provides 680,000 sq ft of retail and leisure space anchored
by Next, Sainsbury's, and an occupier-owned Primark, alongside a
670-space car park, a nine-screen cinema and The Moor Market, a
covered marketplace owned by Sheffield City Council. The retail and
leisure area has an affordable and therefore sustainable average
rent of GBP13.90 per sq ft.
The estate comprises 15 assets capable of being sold separately,
which provides inherent liquidity and offers a range of mixed-use
development opportunities. NewRiver has identified the potential to
develop up to 1,100 build-to-rent residential units and up to 300
purpose-build student accommodation units, offering significant
capital growth opportunities.
The acquisition price of GBP41.0 million reflects a significant
discount to the breakup value of these individual assets, as
provided by an independent valuer. It also represents a net initial
yield of 9.1%, which is expected to rise imminently following the
completion of a number of leasing deals to 9.8%, with an equivalent
yield of 11.3% and a reversionary yield of 14.6%.
The Moor benefits from its adjacency to Sheffield City Council's
GBP470 million 'Heart of the City II' regeneration project, which
is delivering a dynamic and vibrant mixed-use district in the city
centre that connects all neighbouring quarters. The project aims to
generate 7,000 jobs in the city by 2030 and has already seen the
development of a five-storey office building, which is fully let to
HSBC and CMS, and a commitment by John Lewis to a new 20-year lease
and refurbishment of its city centre store.
The gross asset value subject to the transaction is GBP41.0
million. NewRiver's share of the consideration will be satisfied
from existing resources, with completion scheduled for 1 April
2021. NewRiver will hold a 10% interest in the asset (NewRiver
share: GBP4.1 million) and will benefit from 10% of the net rental
income of GBP4.0 million per annum (NewRiver share: GBP0.4 million
per annum). NewRiver will also be appointed as asset and
development manager, in return for a management fee calculated with
reference to the gross rental income and development costs of the
asset, and will receive a promote based on financial
performance.
Allan Lockhart, Chief Executive commented: "The acquisition of
The Moor with our joint venture partner BRAVO represents a rare
opportunity to acquire a 28 acre estate in one of the UK's largest
and fastest-growing cities, at a very attractive price which is far
below the breakup value of the site. This acquisition will generate
very attractive returns for NewRiver, driven by sustainable rental
income and capital growth through the redevelopment of parts of the
estate, principally for residential uses. Sheffield City Council
has demonstrated that it is a forward-thinking and proactive local
authority, and we look forward to working with them to deliver a
vibrant and connected city centre. Taking a 10% stake ensures we
maintain our financial discipline, as we remain on track to meet
our target of GBP80 million to GBP100 million of disposals this
financial year."
For further information
NewRiver REIT plc +44 (0)20 3328 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Tom Loughran (Head of Investor
Relations)
+44 (0)20 7251
Finsbury 3801
Gordon Simpson
James Thompson
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019. This
announcement has been authorised for release by the Board of
Directors.
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 GBP1.1 billion portfolio covers 9 million sq ft and
comprises 33 community shopping centres, 24 conveniently located
retail parks and around 700 community pubs. We hand-picked our
assets to deliberately focus on occupiers providing essential goods
and services, and avoid structurally challenged sub-sectors such as
department stores, mid-market fashion and casual dining. This
focus, combined with our affordable rents and desirable locations,
delivers sustainable and growing returns for our shareholders,
while our active approach to asset management and inbuilt 2.6
million sq ft development pipeline provide further opportunities to
extract value from our portfolio.
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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