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The Markets
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The Markets
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Real Estate

NewRiver Retail bags £108mln of new property

It is acquiring four shopping centres and two retail warehouses with an average rental yield of 8%.

NewRiver Retail (LON:NRR) has swiftly deployed the bulk of the £150mln it raised recently from investors.

It splashed £108mln on four shopping centres and two retail warehouses with an average rental yield of 8%.

Avid viewers of Homes Under the Hammer, will know that is a very decent return from your investment.

All joking aside, these look like very astute deals.

It has paid £92.3mln for the Neptune Portfolio, which was assembled between 2005 and 2006 at a cost of £312mln.

In doing so it will take ownership of the Ridings Shopping Centre, Wakefield, West Yorkshire; the Cornmill Shopping Centre, Darlington, in the North East of England; and the Capitol Shopping Centre, Cardiff in South Wales.

It has made three further acquisitions in Daventry, Northamptonshire, York and Penge, South-East London.

Chief executive David Lockhart told investors: "Following our recently over-subscribed £150mln 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.

“We are confident that these acquisitions will add significant long term value for our shareholders."

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