Disposal

RNS Number : 8405C

NewRiver Retail Limited

14 March 2011

 



NewRiver Retail Limited ("NewRiver" or "the Company")

Property Disposal

NewRiver Retail Limited (NRR) today announces that it has exchanged contracts for the sale of Princess House, Shrewsbury to Rockspring PIM, for a total consideration of £9.6 million, reflecting a net initial yield of 7.2%. The property comprises 50,800 sqft and given that the apportioned purchase price was £8.0 million plus costs, the sale price represents a significant return on the original investment.

Additionally NewRiver has completed the sale of the heritable interest of Unit 3, 50-60 Union Street in Glasgow. Occupying 16,900 sqft the asset has been sold to the Nobel Group, the principal tenant, for a consideration of £1.3 million. The original acquisition price for the entire Glasgow asset was £1.5 million with the unit sold having an apportioned price of £0.78 million. Following the sale the income return on the net cost of the two remaining units is 48% per annum and this sale also reflects an equity return of over 300% on the original apportioned price.

Both disposals were assets purchased in March 2010 as part of the UBS Triton Property Fund acquisition in collaboration with NewRiver's Joint Venture partner Morgan Stanley Real Estate Investing.

Property Director of NewRiver Retail Limited, Allan Lockhart said:

"These transactions demonstrate the capabilities of NewRiver to acquire real estate, enhance value and realise capital through a sale in a relatively short period. We are very pleased with the performance of these assets and we look forward to recycling the surplus generated into new and exciting projects."

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For further information

NewRiver Retail Limited                                                                      Tel: [phone]

David Lockhart, Chief Executive                                                                     

Pelham Bell Pottinger                                                                         Tel: [phone]

David Rydell/Rosanne Perry                                                   

Cenkos Securities

Ian Soanes/Max Hartley                                                                      Tel: [phone]

About NewRiver

NewRiver Retail Limited is a REIT status specialist real estate investor and asset manager focusing solely on the UK retailing sector with a particular focus on food and value retailing. The management team, led by David Lockhart, have more than 75 years' combined experience in UK commercial property markets. With more than £150 million of assets under management 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. It is NewRiver's intention to become one of the leading sector-focused value-creating property investment businesses operating in the UK retail sector. The Company was founded in 2009 and its shares were admitted to London's AIM and Channel Islands Stock Exchange (CISX) in September of the same year. For more information on NewRiver, please visit www.newriverretail.com

 

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