NewRiver buys Redevco portfolio
Published: 07 June, 2010
NewRiver Retail has bought a portfolio of six long leasehold sites from Redevco for £19.01m, reflecting a net initial yield of 7.75 per cent.
The portfolio comprises six large space retail units totalling 308,400 sq ft in city centre locations in the south east of England. The average rent across the portfolio equates to £6.21 per sq ft and based on the purchase price, the average capital value is £61.65 per sq ft.
The portfolio is made up of a 23,100-sq ft Wilkinson store in Loddon Mall, Basingstoke; a 26,800-sq ft Wilkinson store in St George Street, Canterbury; the 150,400-sq ft TJ Hughes department store in Glasgow’s Trongate; a 26,400-sq ft New Look unit in The Broadwalk, Harlow; 34,700-sq ft Wilkinson store in the Dolphin Centre, Poole and a 47,000-sq ft TJ Hughes store in Market Place, Romford.
A debt facility has been put in place with Santander at 65% of the purchase price.
Allan Lockhart, property director of NewRiver Capital, said: "There are a number of attractive features within this portfolio including the excellent income security that an unexpired lease term average of 12.6 years provides; current rental levels are very modest, offering excellent prospects of rental growth and each of the properties offers identifiable capital value enhancement opportunities, from releasing significant marriage value from lease extensions to re-gearing the leases with the freeholders through to redevelopment.
