Council appoints NewRiver to Kirkby project

NewRiver REIT has been appointed by Knowsley Council as asset manager of Kirkby town centre, the 225,000 sq ft site bought from St Modwen last month for £44m.

Knowsley brought the 87 shops and 12.4 acres of land which make up the centre into council ownership in November, in what the council said was its largest-ever property investment.

The council said the move was a “significant step forward after 20 years of failed attempts from the private sector to progress with development in Kirkby”.

The first scheme to be built will be a 94,000 sq ft retail-led scheme, which includes a Morrison’s supermarket, a 20,000 sq ft Home Bargains, and a KFC.

The deal was formally agreed in November and the contract signed with GMI to allow work to begin on the retail-led project later this month.

Under the terms of the agreement with Knowsley, NewRiver will provide strategic asset management and business planning advice, and ongoing asset management services, in exchange for an annual fee.

The agreement also includes the potential for NewRiver to provide development monitoring services relating to the construction of the 45,000 sq ft Morrisons superstore.

Occupiers at Kirkby town centre include Iceland, Home Bargains, Superdrug and Costa.

Allan Lockhart, chief executive of NewRiver said: “Knowsley Council is a forward-thinking local authority that has taken a decisive step to deliver a new vision for its community. We look forward to supporting Knowsley Council through our market-leading asset management platform, and to working with the many other local authorities across the UK which are taking positive steps to transform their town centres.”

Mike Harden, chief executive of Knowsley Council said: “In November 2019, Knowsley Council took the bold step to acquire Kirkby town centre in order to take control and deliver the retail scheme that had been long promised by the private sector. In NewRiver we have found a highly experienced asset manager with the scale and retailer relationships to ensure that Kirkby town centre thrives with an attractive retail offer.”

Your Comments

Read our comments policy

Should’ve spent the money on the houses never buy mind buying others

By Mr harrison

So council puts years of pressure on St Mods to develop the town centre (which is desperately required) St Mods sell to the council and now New River REIT appointed who will charge an annual fee at circa 1-1.5% of £44m to asset manage Well done Knowsley, talk about taking back control and driving this one forward. All it demonstrates is a severe lack of resource internally and lack of asset management expertise to turn it around themselves.

By Sceptic

Related Articles

Sign up to receive the Place Daily Briefing

Join more than 12,000 property professionals and receive your free daily round-up of built environment news direct to your inbox


Join more than 12,000 property professionals and sign up to receive your free daily round-up of built environment news direct to your inbox.

By subscribing, you are agreeing to our Terms & Conditions and Privacy Policy

Would you also like to receive our free PlaceTech Weekly newsletter, covering innovation in property?*