NewRiver Retail buys out JV partner
Published: 15 January, 2015
£71m portfolio deal give NewRiver control of five UK malls
NewRiver Retail has bought out its partner to take full ownership of the NewRiver Retail Property Unit Trust portfolio. The portfolio comprises five shopping centres located in Oxford, Hull, Bridlington, Kilmarnock and Leamington Spa; and a single high street asset also in Hull. Together these assets have a net lettable area of almost one million sq ft across over 200 tenancies with an average lease length exceeding 7.2 years.
NewRiver bought its original 10 per cent interest in 2012 alongside LVS, which was ultimately controlled by bond investor Pimco. NewRiver managed the properties on behalf of the unit trust and now it has paid its partner £71m at a net initial yield of 7.75 per cent to take full ownership.
Chief executive David Lockhart said: “Having managed the portfolio from the initial acquisition in December 2012, we know the assets extremely well and are in an excellent position to pursue a range of exciting value-enhancing asset management and risk controlled development opportunities.”