NewRiver REIT PLC Acquisition of Sprucefield Retail Park, Lisburn (4456U)
25 Noviembre 2019 - 1:00AM
UK Regulatory
TIDMNRR
RNS Number : 4456U
NewRiver REIT PLC
25 November 2019
NewRiver REIT plc
("NewRiver" or the "Company")
Acquisition of Sprucefield Retail Park, Lisburn for GBP40.0
million, at a net initial yield of 8.7%
NewRiver is pleased to announce that it has exchanged contracts
to acquire Sprucefield Retail Park, Lisburn from Intu Properties
plc for GBP40.0 million, representing a net initial yield of 8.7%.
Once completed, the acquisition will generate an additional GBP3.7
million of annualised Net Property Income for NewRiver.
Sprucefield Retail Park is one of Northern Ireland's leading
out-of-town retail destinations and is located just one mile south
of Lisburn city centre, adjacent to the main junction between
Northern Ireland's M1 motorway and the A1 road, which is the main
route connecting Northern Ireland to the Irish Republic. The
47-acre site comprises a five-unit retail park providing 231,000 sq
of retail space, a 1,200-space free car park and 18 acres of
development land. The retail park is anchored by Sainsbury's and
B&Q, and has an affordable average rent of GBP16.11 per sq ft,
with a weighted average unexpired lease term of 7.5 years.
In addition to benefitting from an attractive entry price with a
yield of 8.7% and a capital value per sq ft of GBP19 across the
site, NewRiver has identified significant opportunities to extract
value from the asset, through active asset management and the
disposal of parcels of land for development. Proposed asset
management initiatives include letting a vacant unit at the asset,
for which negotiations have already begun with prospective tenants,
and right-sizing units to increase the sustainability of income and
diversify the retail offer. The gross asset value subject to this
transaction is GBP40.0 million, and this will be satisfied from
existing resources and available credit facilities.
Allan Lockhart, Chief Executive commented: "We are pleased to
announce that we have exchanged contracts to acquire Sprucefield
Retail Park. This high-quality asset will generate GBP3.7 million
of annualised Net Property Income, which will be highly accretive
to Underlying Funds From Operations and significant in improving
our dividend cover, which is our key priority. In addition to an
attractive long-term income return, the development land offers the
opportunity to deliver significant capital growth, leading to a
very attractive total return. Our successful disposal programme in
this financial year places us in a position to take advantage of
current market dislocations and make highly accretive acquisitions
such as Sprucefield Retail Park and the recently-acquired Poole
Retail Park."
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
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing, developing and
recycling convenience-led, community-focused retail and leisure
assets throughout the UK.
Our GBP1.3 billion portfolio covers 9 million sq ft and
comprises 33 community shopping centres, 24 conveniently located
retail parks and over 650 community pubs. Having hand-picked our
assets since NewRiver was founded in 2009, we have deliberately
focused on the fastest growing and most sustainable sub-sectors of
the UK retail market, with grocery, convenience stores, value
clothing, health & beauty and discounters forming the core of
our retail portfolio. 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 in-built 2.3 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) and is a constituent of the FTSE 250
and EPRA indices. Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31
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END
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