NewRiver spends £108m
Published: 24 December, 2015
Centres in Cardiff, Wakefield, Darlington and Penge added to portfolio
NewRiver Retail has bought Neptune portfolio of shopping centres– comprising the Ridings shopping centre in Wakefield, the Cornmill shopping centre in Darlington and the Capitol shopping centre in Cardiff – for £92.3m, equating to a net initial yield of 8.0 per cent, an equivalent yield of 9.6 per cent and a reversionary yield of 10.5 per cent.
The 727,000-sq ft portfolio has a high occupancy of 96 per cent generating a strong and a sustainable income stream underpinned by a WALE of 5.30 years. Anchors include Next, Primark, Tesco, Morrisons, TK Maxx, Easy Gym and Boots attracting a combined annual footfall of 22m. Existing total net income for the portfolio is £7.75m pa with affordable average rents of £11.80 per sq ft offering excellent opportunities for future income growth.
NewRiver has also bought the Daventry retail park for £4.1m, the Blenheim shopping centre in Penge for £6.85m and a B&M retail warehouse next to the Clifton Moor retail park in York for £4.65m at a blended net initial yield of 7.3 per cent.
David Lockhart, CEO at NewRiver Retail, said: "Following our recently over-subscribed £150m equity raise, we are delighted to announce the swift deployment of the majority of the proceeds into these strategic acquisitions. The Neptune Portfolio marks another major shopping centre portfolio acquisition for NewRiver and the combined acquisitions present a range of immediate value-enhancing asset management and risk controlled development opportunities.”