Deals flow at NewRiver
Published: 22 August, 2011
NewRiver Retail has completed a series of deals to take its portfolio to £250m under management
NewRiver has bought the long leasehold interest in the Sovereign shopping centre, Boscombe from UBS Global Asset Management for £12.0 m to show a net initial yield of 9.6 per cnet. The 86,000-sq ft shopping centre is anchored by Sports Direct, Poundland, Peacocks, 99p Stores and New Look with direct links into adjoining anchor tenants Wilkinson, Lidl and Boots.
In total there are 48 tenancies and the current gross rent roll is £1.6m pa with an average weighted unexpired lease length of 10.7 years. The company says this is an excellent fit with NewRiver's investment strategy of targeting food and value anchored district centres, with low occupational costs, stable cashflows and identified development and value creating opportunities.
At the same time it has bought of23-24 Market Place, Great Yarmouth for £2.5m. The 41,280 sq ft property was let to Life & Style Retail at £200,000 pa but the tenant is in administration and no longer trading from the premises. Simultaneously with the purchase, NewRiver has agreed a new 10-year lease to Poundland at £295,000 pa, reflecting a net initial yield on purchase costs of 11.2 per cent.
And NewRiver has also been appointed by SWIP as development manager on The Market Centre,Crewe. The partially covered shopping centre provides 155,000 sq ft of retail accommodation in 25 units and benefits from a 290-space surface car park. This further extends NewRiver's relationship with SWIP, as the company also advises on asset management and development at Abbey Shopping Centre in Abingdon, Oxon.
Allan Lockhart, NewRiver’s property director, said: "The transactions demonstrate the capabilities of NewRiver to acquire attractive real estate, enhance value and recycle capital through sales. In particular the purchase and simultaneous re-let of the asset at Great Yarmouth demonstrates our opportunistic capabilities and strong relationships with dynamic and growing retailers.”
