23rd Sep 2014 09:22
LONDON (Alliance News) - Real estate investment trust NewRiver Retail Ltd Tuesday said it has expanded its agreement to lease a significant proportion of its public house portfolio to The Co-operative Group Ltd.
Under the deal, NewRiver will lease a portfolio of 63 new convenience stores from its public house portfolio to the retailer, totalling 215,232 square feet of retail space.
In April, NewRiver signed a deal to develop and lease a significant chunk of the pub sites portfolio that its BRAVO II joint venture bought last November. The deal covered 54 new convenience stores developed in a phased programme over two years and leased to The Co-Operative Group.
NewRiver Monday said the lease terms remain at 15 years with no break clause and an annual RPI-linked rental increase formula capped at 4% and collared at 1%.
With the increase in the portfolio, the total fee payable is now GBP3.9 million, up from GBP2.7 million under the original deal announced in April.
NewRiver said the majority of the convenience store developments will be constructed on surplus land and car park areas thereby protecting the value and income generated by the pubs. The remainder of the developments will involve conversions and new builds on the site of the existing pubs.
NewRiver Retail shares were quoted up 0.3% at 292.37 pence per share Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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