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NewRiver and Pimco JV buys retail park for £44.7m

NewRiver and Pimco JV buys retail park for £44.7m – NewRiver REIT has acquired a retail park in Poole, Dorset, for its new joint venture with Pimco.

The JV, with Pimco’s BRAVO Strategies III fund, has exchanged contracts to buy the Poole Retail Park from LS Poole Retail for £44.7m, reflecting a net initial yield of 8%.

NewRiver will hold a 10% interest in the asset and will benefit from 10% of the net rental income (£0.4m a year). NewRiver will be appointed as asset manager, in return for a management fee calculated with reference to the gross rental income of the asset.

NewRiver’s share of the transaction will be satisfied from existing resources and available credit facilities.

The fully-let retail park, which is located between the town centres of Poole and Bournemouth in Dorset, comprises 14 units offering 208,000 sq ft of retail space, with a tenant line-up including John Lewis at Home, DW Sports, Next Home, Homesense, Boots and Home Bargains. The asset has a weighted average unexpired lease term of 6.7 years and an affordable average rent of £18.24/sq ft.

NewRiver said the asset provides it with a number of opportunities to extract further value and enhance income streams through active asset management and risk-controlled development, including the expansion and adaption of units.

The JV, which was established in May 2019, has now acquired £105.1m of assets (NewRiver share: £34.7m), reflecting a net initial yield of 9%.

NRR : NewRiver and Pimco JV buys retail park for £44.7m


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