Profits up at NewRiver Retail
Published: 29 May, 2012
Specialist retail investor continues to grow despite downturn
NewRiver Retail unveiled a profit before tax of £4.0m for the 12 months to 21 March 2012 after an actiove year whjish saw acquisitions totalling a net £93 million at an average initial yield of 8.5 per cent taking assets under management to £275m.
Voids across the portfolio rose from 3 to 4 per cent but because of its focus on the relatively resilient food and value sub sectors, the spate of retailer failures has had minimal impact with only 1.6 per cent of gross rental income subject to administrations.
Chief executive David Lockhart said: “NewRiver has achieved its objective of establishing a profitable platform with a strong management team that is capable of delivering sustainable growth. Considering the challenging conditions in the wider UK retail environment we have continued to transact on attractive value creating opportunities.
Whilst investment sentiment remains cautious, we believe there continues to be highly attractive opportunities for well capitalised, specialist and proven investors in UK retail property. Through our strong relationships with retailers, wide network of contacts, market intelligence and focused business strategy we are in a strong position to build on our success and enhance our position as one of the UK’s leading retail real estate investors."