22nd Sep 2014 10:01
LONDON (Alliance News) - NewRiver Retail Ltd Monday said it has made GBP15.2 million of acquisitions since the beginning of July at an average net initial yield of 8.75%, while it has sold GBP6.5 million of property.
In a statement, the company said it has also recently completed the acquisition of a portfolio of three shopping centres, part of the Swallowtail Portfolio, for a total consideration of GBP140 million, reflecting a net initial yield of 8%. It also completed the sale of Bramley Shopping Centre in Leeds for GBP18.5 million reflecting a 7.2% yield on exit and an internal rate of return of 13.5%. It had previously announced the exchange of contracts for both of these deals.
The retail property investor said the GBP15.2 million of new acquisitions include the Three Horseshoes Walk Shopping Centre in Warminster, Wiltshire, for GBP9 million, reflecting a net initial yield of 9%, and a 49,000 square foot former department store in Hull for GBP1.9 million, reflecting a net initial yield of 6.3% and a low capital value per square foot of GBP39. It also comprises a 22,000 square foot retail warehouse in Gloucester for GBP4.25 million, reflecting a net initial yield of 8.3%.
The disposals comprise a 44,000 square foot multi-let retail building in Norwich, let principally to Tesco, for GBP6.2 million, reflecting a yield of 6.7% resulting in an internal rate of return of 18%. It also sold a single vacant unit at a centre in North Shields, previously occupied by Dorothy Perkins, to a Costa Coffee franchisee for GBP325,000, above the apportioned entry price in December 2013 of GBP91,000.
"Recycling of capital is an important objective of the company and we are pleased to complete the sale of three assets that have delivered attractive returns through the completion of our active asset management programme," NewRiver Retail Property Director Allan Lockhart said in a statement.
NewRiver Retail shares were up 0.7% at 294.97 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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