11th Aug 2014 09:28
LONDON (Alliance News) - NewRiver Retail Ltd said Monday that it has exchanged contracts to acquire a portfolio of three shopping centre assets, part of the Swallowtail portfolio, for a total consideration of GBP140.1 million.
The UK real estate investment trust said the deal represents a net initial yield of just under 8%.
The acquisition was funded through NewRiver Retail's joint venture with the Bravo II partnership, a fund advised or managed by Pacific Investment Management Company LLC, with both parties taking a 50% equity stake. The Portfolio was acquired using existing cash resources ahead of a new debt-facility which is at an advanced stage, said the company.
NewRiver Retail has acquired shopping centres comprising of 758,000 square feet of retail space in Hastings, Newton Mearns and Newtonabbey with an annual footfall of more than 15 million. The portfolio is let to 185 tenants including major brand retailers such as Marks & Spencer, Asda, Primark, Next, TopShop, H&M and Poundland. The low average vacancy rate at 3.5% reflects the strong underlying retail sales performance of the portfolio, said NewRiver.
"This major acquisition increases the growth asset base of NewRiver Retail to £730m and represents a significant milestone in the company's plan to reach £1bn of assets under management in the near future," said Allan Lockhard, property director at NewRiver Retail.
Shares in NewRiver Retail were Monday trading 0.25% lower at 285.29 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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