Acquisition

RNS Number : 8090S

NewRiver Retail Limited

13 July 2015

 

NewRiver Retail Limited

("NewRiver" or "the Company")

Exchange of contracts in relation to £69 million acquisition

of 13 Retail Warehouses at a net initial yield of 8%

NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces that it has exchanged contracts to acquire the Ramsay Retail Warehouse Portfolio (the "Portfolio") for a total consideration of £69.1 million, equating to a net initial yield of 8.0 per cent. on the income producing assets.

The Portfolio is to be acquired from a major foodstore operator utilising a portion 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 gross proceeds of approximately £150 million, as announced on 19 June 2015 (the "Placing").

The acquisition is in line with the Company's proven business model of acquiring carefully selected retail assets that will generate attractive cash on equity returns with identifiable opportunities to unlock additional value through the Company's active asset management and risk-controlled development.

The Ramsay Portfolio

The Ramsay Portfolio, a geographically diverse portfolio comprising 13 assets, includes nine value-led retail parks and four development sites each with approved planning consents and pre-let interest from retailers.

The portfolio comprises 462,916 sq. ft. of lettable space let to 36 occupiers located in successful retail locations adjacent to upper-quartile performing foodstores. The portfolio has a high occupancy of 97% and generates a strong, sustainable income stream underpinned by a WALE of 6.27 years. The portfolio's high quality retail covenants, reflective of the Company's existing portfolio, include leading retailers such as TK Maxx, Argos, Poundstretcher, B&M, Matalan and Boots. Existing total Net Income for the portfolio is £5,607,009 per annum with average rents of £12 per sq. ft. offering excellent opportunities for future income growth.

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.

Further details of the Portfolio are included in the notes to editor below.

David Lockhart, CEO at NewRiver Retail, said:

"We are delighted to announce the Ramsay Retail Warehouse Portfolio acquisition which will be funded by the proceeds from our recent fundraise, the result of which reflects the great support we continue to receive from new and existing shareholders for the Company's growth strategy. 

This attractive yielding Portfolio benefits from a strong retailing covenant leading to a secure and sustainable income stream and presents an immediate opportunity for NewRiver to pursue a range of value-enhancing asset management and risk controlled development initiatives. We are confident that this acquisition will add significant long term value for our shareholders."   

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NewRiver Retail Limited  David Lockhart, Chief Executive Mark Davies, Finance Director	Tel: [phone]
Bell Pottinger David Rydell / James Newman / David Bass	Tel: [phone]
Liberum Richard Crawley / Jamie Richards	Tel: [phone]
Peel Hunt LLP Capel Irwin / Alex Vaughan / Hugh Preston	Tel: [phone]

Notes to editors

The 13 assets within the portfolio include the following nine investment properties:

E5 Retail Park, Bradford

-     90,281 sq. ft. with 832 car parking bays

-     WALE of 4.81 years

-     Key retailers: Poundland, Card Factory, Pets at Home, Specsavers, Pure Gym and Wickes

South Lakeland Retail Park, Kendal

-     63,546 sq. ft. with 246 car parking bays

-     WALE of 5.83 years

-     Key retailers: Currys PC World, Next, Halfords, Poundstretcher, Matalan and Pets at Home

Waterfront Retail Park, Barry

-     54,977 sq. ft. with 411 car parking bays

-     WALE of 8.79 years

-     Key retailers: Halfords, Argos, Pets at Home, Poundstretcher and KFC

Speke Centre, Liverpool

-     39,861 sq. ft. with 696 car parking bays

-     WALE of 8.15 years

-     Key retailers: Iceland, Poundland and TK Maxx

Whitick Retail Park, Coalville

-     54,610 sq. ft. with 697 parking bays

-     WALE of 2.19 years

-     Key retailers: B&M, Poundstretcher and Littlewoods

Kirstall Retail Park, Leeds

-     17,831 sq. ft. with 480 parking bays

-     WALE of 4.76 years

-     Key retailers: Boots and Matalan

Victoria Road Retail Park, Beverley

-     22,569 sq. ft. with 720 parking bays

-     WALE of 1.03 years

-     Key retailers: Halfords, Carpet Right and Poundstretcher

Saltney Retail Park, Chester

-     45,125 sq. ft. with 380 parking bays

-     WALE of 16.29 years

-     Currently occupied by Go Outdoors

Leafield Road, Dumfries

-     29,887 sq. ft. with 610 parking bays

-     WALE of 18.43 years

-     Currently occupied The Range

Additionally there are four further development properties within the Portfolio each with approved planning consents and strong pre-let interest from occupiers. The properties include:

Canvey Island Retail Park, Canvey Island

-     55,000 sq. ft.

-     Open A1 consent and no planning restrictions

-     Development plans: construction of four new retail units

Uffington Retail Park, Stamford

-     57,240 sq. ft.

-     Open A1 consent and no planning restrictions

-     Development plans: construction of seven new units, including a 3,250 sq. ft. public house and restaurant

Treloggan Road Retail Park, Newquay

-     28,675 sq. ft.

-     Open A1 non-food

-     Development plans: construction of two new units 

Auchinlea Retail Park, Glasgow

-     70,000 sq. ft. including 40,000 sq ft of existing space

-     Open A1 with no planning restrictions

-     Development plans: construction of three new units 

About NewRiver

NewRiver Retail Limited is an AIM listed REIT. The Company is a specialist real estate investor and asset manager focused solely on UK retail with a particular focus on food and value retailing. At the close of 2014 NewRiver Retail was named Property Company of the Year - Retail & Leisure at the Estates Gazette Awards.

The management team, with over 100 years combined experience in the UK commercial property market, actively engages with retailers, stakeholders and consumers. NewRiver Retail is one of the UK's largest shopping centre owner/managers with assets under management of £849 million principally comprising 29 UK wide shopping centres, further nationwide retail assets and a portfolio of 202 public houses principally suitable for conversion to alternative uses. The portfolio has 1,376 occupiers, a total of over 5.6 million sq ft, total annual footfall of over 121 million and a retail occupancy rate of 96 per cent.

The Company's activities include active and entrepreneurial asset management and risk-controlled development, utilising both its own balance sheet and co-investment joint venture structures.

Founded in 2009, NewRiver has become the UK's leading retail-focused property investment business. The Company's shares were admitted to London's AIM in September of the same year. For more information on NewRiver, please visit www.nrr.co.uk . 

 

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