NewRiver buys out JV partner

Published:  30 June, 2017

100 per cent ownership secured at Belfast, Glasgow, Hastings and Middlesbrough

NewRiver has reached agreement to buy out the remaining 50 per cent share in its BRAVO joint ventures for £59.4m. The transaction allows NewRiver to gain control over four convenience-led shopping centres with a total gross asset value of £240m, representing a topped up net initial yield of 7.3 per cent.

The BRAVO joint venture owner the 320,000-sq ft Abbey Centre in Newtownabbey, Belfast; the 202,000-sq ft Avenue shopping centre in Newton Mearns, Glasgow; the 290,000-sq ft Priory Meadow shopping centre in Hastings and the 240,000-sq ft Hillstreet shopping centre in Middlesbrough. They generated net rental income of approximately £16.5m in the year to 31 December 2016 and had net assets of approximately £120.8m. The £120m of debt secured on the properties will remain in place.

Chief executive David Lockhart said: “We are very familiar with the BRAVO assets with a clear understanding of their growth potential, having been responsible for their day to day asset management since the joint venture was established in 2013. Given the investment made into the BRAVO assets to date, we are confident that this acquisition will produce attractive long term returns for our shareholders."

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