29th Sep 2026 13:20
(Alliance News) - NewRiver REIT PLC on Tuesday announced the formation of a new retail park capital partnership, which has subsequently purchased The Springs retail park.
NewRiver, a London-based developer and manager of retail properties, said the partnership is with affiliates of Singapore-based real estate investors Soilbuild Group Holdings Ltd and United Engineers Ltd.
It said this creates a scalable platform to grow its exposure to retail parks in a capital-efficient manner, while generating both long-term recurring fee income and attractive direct investment returns. Retail parks are "one of its highest conviction investment sectors," NewRiver noted.
NewRiver will earn the recurring fee income by providing acquisition, financing and asset management services to the partnership.
The company said it holds a 25% interest in the partnership, which, following the completion of a loan facility, results in a GBP9.3 million net equity investment.
NewRiver also announced that the capital partnership has completed its first acquisition, The Springs retail park in Leeds, England, from Legal & General Group PLC for GBP73.5 million.
It said The Springs' price reflects a topped-up net initial yield of 7.0%, and an equivalent yield of 7.9%. The retail and leisure park's occupiers include Marks & Spencer PLC, Next PLC, and Boots.
"This capital partnership is a strong endorsement of the retail sector and of NewRiver's own retail expertise and operating platform...[and] The Springs is an exceptional first acquisition for the capital partnership," commented NewRiver Chief Executive Allan Lockhart. "It is a high-quality asset with attractive fundamentals, strong occupier performance and clear opportunities to deliver further income and value growth.
"This transaction also establishes a long-term relationship with partners who share our conviction in the retail park sector. Together, we have the ambition to build a significant portfolio over time while maintaining our disciplined approach to capital allocation."
NewRiver REIT shares were 1.2% higher at 77.90 pence early on Tuesday afternoon in London.
By Emma Curzon, Alliance News reporter
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