NewRiver Retail is planning to raise £150m, buy out the minority interests in two unit trusts and move to the main market. Of the £150m, £29m would be used to fund the acquisition of a 50% stake in the Trent JPUT (the Marston’s portfolio) at an implied net initial yield of 10.1%; £23m is for the acquisition of the 50% stake not already owned by NewRiver in the Camel III JPUT (a portfolio of five shopping centres) at an implied net initial yield of 7.2% and the rest to fund their acquisition and development pipeline.
Heads of Terms have been agreed and respective board approvals have been obtained for the acquisition of a portfolio of 13 retail park assets for circa £70m. The portfolio comprises 13 sites, of which nine are investment properties (valued at £64m) and four are assets which also have development potential. Each property asset is adjacent to a store occupied by one of the major grocers. Under the Heads of Terms, the initial yield at acquisition will be approximately 8 per cent. The portfolio is well let, with 97 per cent. occupancy and an average rent of £12 per sq. ft. Thy think the portfolio offers a good investment opportunity as well as development prospects, with a projected capital expenditure requirement of £30m. Planning consent has already been obtained for the four development assets.
They are also announcing a first quarterly dividend of 4.5p.
NRR : NewRiver Retail to expand and move to main market