NewRiver Retail Limited Completion of acquisition (2011C)
January 15 2015 - 1:00AM
UK Regulatory
TIDMNRR
RNS Number : 2011C
NewRiver Retail Limited
15 January 2015
NewRiver Retail Limited
("NewRiver" or "the Company")
Completion of the acquisition of remaining 90% of Shopping
Centre Joint Venture from LVS Luxembourg IV Sarl ("LVS") for GBP71
million (the "Acquisition")
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in
value-creating retail property investment, active asset management
and risk controlled development, announces that it has today
completed the acquisition (the "Acquisition") from LVS, a
subsidiary of Bravo (a fund advised or managed by Pacific
Investment Management Company LLC), of the remaining 90 per cent of
a joint venture (the "NewRiver Retail Property Unit Trust") not
already owned by NewRiver, as previously announced on 3 December
2014, for a cash consideration of GBP71 million.
The Company has financed the acquisition through the proceeds of
an equity issue of 27,272,727 new Ordinary Shares in NewRiver (the
"Placing Shares") at a price of 275 pence per Placing Share,
raising gross proceeds of approximately GBP75 million, as announced
on 8 January 2015.
The underlying property portfolio comprises five shopping
centres located in Oxford, Hull, Bridlington, Kilmarnock and
Leamington Spa; and a single high street asset also in Hull.
Together these assets have a net lettable area of almost one
million square feet across over 200 tenancies with an average lease
length exceeding 7.2 years. Since NewRiver's acquisition of the
original 10 per cent interest in 2012, the assets have performed
well and have benefited from the Company's active asset management
programme. Looking forward, the assets present a range of
significant opportunities to enhance value through further asset
management initiatives and risk-controlled development which are
already being progressed by the Company. Whilst these opportunities
are being pursued the portfolio will continue to provide an
attractive income return.
The Acquisition was made off-market at a net initial yield of
7.75 per cent. on the acquisition price. The Acquisition is
expected to be enhancing to NAV and EPS in the current financial
year and beyond. Profit Before Tax for the year ended 31 December
2013 (audited) attributable to Unitholders of the NewRiver Property
Unit Trust was GBP6.3 million (recurring) with a GBP3.6 million
fair value surplus, resulting in a total Profit Before Tax
attributable to Unitholders for the year ended 31 December 2013 of
GBP9.9 million.
David Lockhart, Chief Executive of NewRiver Retail,
commented:
"We are delighted to have completed the off-market acquisition
of this shopping centre portfolio from Bravo - resulting in
NewRiver owning and controlling 100% of the assets which providean
attractive income stream. Having managed the portfolio from the
initial acquisition in December 2012, we know the assets extremely
well and are in an excellent position to pursue a range of exciting
value-enhancing asset management and risk controlled development
opportunities. We are confident that the Acquisition will add
significant long term value for the Company and it is expected to
be NAV and EPS enhancing in the current financial year and
beyond."
*Bravo refers to a fund advised or managed by Pacific Investment
Management Company LLC
For further information
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief
Executive
Mark Davies, Finance
Director
Bell Pottinger Tel: 020 3772 2500
David Rydell/David Bass/James
Newman
Liberum Tel: 020 3100 2000
Chris Bowman/Jamie Richards
About NewRiver
NewRiver Retail Limited is an AIM listed REIT. The Company is a
specialist real estate investor and asset manager focused solely on
UK retail with a particular focus on food and value retailing.
NewRiver Retail was named Property Company of the Year - Retail
& Leisure at the Estates Gazette Awards at the close of
2014.
The management team, with over 100 years combined experience in
the UK commercial property market, actively engages with retailers,
stakeholders and consumers. NewRiver Retail is one of the UK's
largest shopping centre owner/managers with assets under management
of approximately GBP800 million principally comprising 29 UK wide
shopping centres, further nationwide retail assets and a portfolio
of 202 public houses principally suitable for conversion to
alternative uses. The portfolio has 1,380 occupiers, a total of
over 5.2 million sq ft, total annual footfall of over 112 million
and a retail occupancy rate of 96 per cent.
The Company's activities include active and entrepreneurial
asset management and risk-controlled development, utilising both
its own balance sheet and co-investment joint venture
structures.
Founded in 2009, NewRiver has become the UK's leading
retail-focused property investment business. The Company's shares
were admitted to London's AIM in September of the same year. For
more information on NewRiver, please visit www.nrr.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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