18th Apr 2016 06:59
LONDON (Alliance News) - NewRiver Retail Ltd said Monday it has paid GBP120.3 million for the Broadway shopping centre and Broadway Square in Bexleyheath, south-east London, in its largest single asset acquisition to date.
The retail property investor said the acquisition equates to a net initial yield of 6.7% and an equivalent yield of 7.0%, with net rental income of GBP8.2 million per annum.
NewRiver Retail said the Bexleyheath assets, which were purchased from an unnamed institutional vendor using existing cash resources, are 100% occupied.
In total, the Bexleyheath assets comprise of 525,000 square feet of retail space across an eleven-acre site and make up more than 60% of the town's retail space, NewRiver Retail said. Tenants include Marks and Spencer PLC, Boots UK Ltd, J Sainsbury PLC and JD Sports Fashion PLC.
"Following the acquisition of the Neptune shopping centre portfolio in January this year for GBP108.0 million, this second major acquisition deploys the majority of the proceeds of our GBP150.0 million equity raise completed in January 2016, demonstrating our ability to swiftly deploy fresh capital for strategically selected assets that meet our returns criteria," said Chief Executive David Lockhart.
By Hannah Boland; [email protected]; @Hannaheboland
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