NewRiver REIT (NRR) has sold a 90% stake in a Northern Ireland retail park for £34.7m.
The group has sold the stake in Sprucefield Retail Park, in Lisburn, to its joint venture partner BRAVO for a net initial yield of 9.0% and a 5% discount to its March 2020 valuation.
NRR has now sold £50.4m of assets in its full year 2021, improving its loan to value ratio to 47.1%.
The company retains a 10% interest in the asset (NRR share: £3.9m), and will benefit from 10% of the net rental income (NRR share: £0.4m per annum). NRR has also been appointed as asset manager, in return for a management fee calculated by reference to the gross rental income of the asset..
Including deals exchanged or under offer, the deal brings NRR sales proceeds to £65.7m, which in aggregate represent a 3% discount to March 2020 valuations. This is in-line with the company’s strategy to dispose of £80m to £100m of assets this financial year.
NRR’s current joint venture relationship with BRAVO was formed in May 2019, with the aim of acquiring and managing a portfolio of retail parks in the UK. The joint venture has made acquisitions totalling £143.7m (NRR share: £38.5m).
Allan Lockhart, chief executive, said: “One of our key priorities for this financial year is to dispose of £80m to £100m of assets, in order to improve our LTV in-line with company guidance. This sale means we are ahead of target at the end of the first half, and we continue to add to our disposal pipeline.”
NRR : NewRiver REIT makes £34.7m retail park sale