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NewRiver REIT sells foodstore for £17.9m

NewRiver REIT sells foodstore for £17.9m – NewRiver REIT (NRR) has announced the sale of a 70,000 square foot Asda foodstore and petrol filling station to a private investor for £17.9m. Located at St Elli Shopping Centre, Llanelli (Wales), the sale represents a net initial yield of 6.9% and a 1% discount to its March 2019 valuation.

Capital from sales to be recycled

This transaction brings NRR’s total disposal proceeds since 1 April 2019 to £20.9m as part of a strategy to recycle capital from low yielding assets into higher yielding opportunities in joint ventures. Allan Lockhart, chief executive commented: “We are delighted to have completed this transaction, demonstrating significant progress against our target to recycle 5% of our portfolio this financial year. Since 1 April 2019, we have sold, or are under offer to sell, £30.7 million of assets at a blended net initial yield of 5.8% and, in-line with our strategy, we have already recycled the proceeds of these disposals into our previously-announced acquisition of four retail parks, through a joint venture, for a net initial yield of 9.8%.”

We covered NRR’s annual results recently, which you can read about here.

About NRR

NRR specialises in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK. Its £1.3bn portfolio covers over 9 million sq feet and comprises 34 community shopping centres, 19 conveniently located retail parks and over 650 community pubs. NRR focuses on areas of the UK retail market that include grocery, convenience stores, value clothing, health & beauty and discounters.

NRR: NewRiver REIT sells foodstore for £17.9m

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