NewRiver Retail has exchanged contracts to acquire 13 retail parks and development site for £69m, representing a net initial yield of 8%, including assets in Kendal, Liverpool and Chester.
NewRiver, a listed REIT specialising in retail property investment and active asset management, said it intended to buy the Ramsay Retail Warehouse Portfolio from a major foodstore operator.
The regional parks acquired are:
- South Lakeland Retail Park, Kendal, 63,546 sq ft with 246 car parking bays, and average lease expiry of 5.83 years. Occupiers include Currys PC World, Next, Halfords, Poundstretcher, Matalan and Pets at Home
- Speke Centre, Liverpool, 39,861 sq ft, 696 parking spaces, lease expiry 8.15 years. Iceland, Poundland and TK Maxx
- Saltney Retail Park, Chester, 45,125 sq ft, 380 spaces, 16.29 years. Go Outdoors
The deal would be funded using part of the funds to be raised following completion of the company’s proposed conditional placing of 50,000,000 new ordinary shares which is intended to raise £150m, as announced on 19 June.
The Ramsay portfolio comprises 462,916 sq ft of lettable space let to 36 occupiers. The portfolio has an occupancy level of 97% and produces £5.6m net income a year at average rents of £12/sq ft with an average of 6.27 years left on leases. Occupiers include TK Maxx, Argos, Poundstretcher, B&M, Matalan and Boots.
NewRiver said: “The portfolio presents significant asset management, extension and development opportunities given the existing planning consents totalling some 300,289 sq ft of retail space. NewRiver has already made good progress agreeing terms with leading retailers including B&M, Wickes, Pets at Home and Sports Direct.”