NewRiver Retail is buying a portfolio (“the Ramsay Portfolio”) of retail parks and development sites for £69.1m. the price is equivalent to an initial yield of 8% on the income producing assets.
The Portfolio is to be acquired from a major foodstore operator utilising a portion of the funds to be raised following completion of the Company’s proposed conditional placing of 50,000,000 new ordinary shares which is intended to raise gross proceeds of approximately £150m.
The Ramsay Portfolio comprises 13 geographically diverse assets, includes nine value-led retail parks and four development sites each with approved planning consents and pre-let interest from retailers. It has 462,916 sq. ft. of lettable space let to 36 occupiers located in successful retail locations adjacent to upper-quartile performing foodstores. The portfolio has a high occupancy of 97% and generates a strong, sustainable income stream underpinned by a WALE of 6.27 years. The portfolio’s high quality retail covenants, reflective of the Company’s existing portfolio, include leading retailers such as TK Maxx, Argos, Poundstretcher, B&M, Matalan and Boots. Existing total Net Income for the portfolio is £5,607,009 a year with average rents of £12 per sq. ft. offering excellent opportunities for future income growth.
They say the Portfolio presents significant asset management, extension and development opportunities given the existing planning consents totalling some 300,289 sq. ft. of retail space. NewRiver has already made good progress agreeing terms with leading retailers including B&M, Wickes, Pets at Home and Sports Direct.
The 13 assets within the portfolio include the following nine investment properties:
E5 Retail Park, Bradford
– 90,281 sq. ft. with 832 car parking bays
– WALE of 4.81 years
– Key retailers: Poundland, Card Factory, Pets at Home, Specsavers, Pure Gym and Wickes
South Lakeland Retail Park, Kendal
– 63,546 sq. ft. with 246 car parking bays
– WALE of 5.83 years
– Key retailers: Currys PC World, Next, Halfords, Poundstretcher, Matalan and Pets at Home
Waterfront Retail Park, Barry
– 54,977 sq. ft. with 411 car parking bays
– WALE of 8.79 years
– Key retailers: Halfords, Argos, Pets at Home, Poundstretcher and KFC
Speke Centre, Liverpool
– 39,861 sq. ft. with 696 car parking bays
– WALE of 8.15 years
– Key retailers: Iceland, Poundland and TK Maxx
Whitick Retail Park, Coalville
– 54,610 sq. ft. with 697 parking bays
– WALE of 2.19 years
– Key retailers: B&M, Poundstretcher and Littlewoods
Kirstall Retail Park, Leeds
– 17,831 sq. ft. with 480 parking bays
– WALE of 4.76 years
– Key retailers: Boots and Matalan
Victoria Road Retail Park, Beverley
– 22,569 sq. ft. with 720 parking bays
– WALE of 1.03 years
– Key retailers: Halfords, Carpet Right and Poundstretcher
Saltney Retail Park, Chester
– 45,125 sq. ft. with 380 parking bays
– WALE of 16.29 years
– Currently occupied by Go Outdoors
Leafield Road, Dumfries
– 29,887 sq. ft. with 610 parking bays
– WALE of 18.43 years
– Currently occupied The Range
Additionally there are four further development properties within the Portfolio each with approved planning consents and strong pre-let interest from occupiers. The properties include:
Canvey Island Retail Park, Canvey Island
– 55,000 sq. ft.
– Open A1 consent and no planning restrictions
– Development plans: construction of four new retail units
Uffington Retail Park, Stamford
– 57,240 sq. ft.
– Open A1 consent and no planning restrictions
– Development plans: construction of seven new units, including a 3,250 sq. ft. public house and restaurant
Treloggan Road Retail Park, Newquay
– 28,675 sq. ft.
– Open A1 non-food
– Development plans: construction of two new units
Auchinlea Retail Park, Glasgow
– 70,000 sq. ft. including 40,000 sq ft of existing space
– Open A1 with no planning restrictions
– Development plans: construction of three new units
NRR : NewRiver Retail buys retail park portfolio