NewRiver Retail Limited Acquisition (8157W)
August 24 2015 - 1:00AM
UK Regulatory
TIDMNRR
RNS Number : 8157W
NewRiver Retail Limited
24 August 2015
NewRiver Retail Limited
("NewRiver" or the "Company")
Exchange of contracts for GBP53.5 million acquisition
of 158 Pubs from Punch Taverns, at a net initial yield of
13.61%
NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in
value-creating retail property investment, active asset management
and development, announces that it has exchanged contracts to
acquire a portfolio of 158 pubs across England and Wales (the
"Portfolio") from Punch Taverns for a total consideration of
GBP53.5 million which equates to a net initial yield of 13.61%. The
projected annual profit before tax of the portfolio is circa GBP6
million, which will generate a cash on cash equity return in excess
of 20%.
The acquisition of the portfolio includes circa GBP0.5m of
fixtures, equipment and other assets and will be funded through
existing financial resources, with a new debt facility available in
due course.
The acquisition is in line with the Company's proven business
model of acquiring strategically selected property assets that
offer high cash on equity returns and present opportunities to
create capital growth through NewRiver's active asset management
and risk-controlled development. NewRiver identified the pub sector
as an attractive asset class to deliver on its business objectives
and in November 2013 the Company acquired a portfolio of 202 pubs
from Marston's. Following completion of this acquisition,
NewRiver's pub portfolio will account for circa 15% of its total
assets under management, which will total nearly GBP1 billion.
The Portfolio
The Portfolio comprises 158 pubs across the UK, predominantly
located throughout England, with 34% of sites in the South East and
South West. The Portfolio comprises 339,866 sq. ft. of total
internal gross area, 1,844,766 sq. ft. of total site area and 1,730
car parking spaces and has an estimated reinstatement value of
GBP146 million.
The quality and stability of the Portfolio is reflected in it
being 99.4% let and effectively 100% let for the last four years.
The revenue arrears are negligible and beer volumes have increased
by 2.24% per annum, compound, over the last four years.
The Portfolio has significant asset management and development
opportunities, including unlocking and creating capital growth
through the introduction of new and complementary uses, as well as
offering existing occupiers longer, more sustainable leases.
NewRiver has appointed a third party specialist pub management
company to run the day to day management of the Portfolio and
deliver pre-identified efficiencies, allowing NewRiver to focus on
the asset management and development programme.
NewRiver has identified a number of value-enhancing development
opportunities within the Portfolio, which could include residential
new builds on surplus land, extension or part-conversion of pub
assets for residential use and the build of new convenience stores
on surplus land.
Allan Lockhart, Property Director at NewRiver Retail, said:
"We are delighted to announce the acquisition of the pub
portfolio from Punch Taverns, which represents a strategic
progression for NewRiver, following our acquisition of a similar
portfolio from Marston's in late 2013, the successful result of
which has led us to identify similar opportunities.
In many ways this Portfolio is similar to our Marston's
transaction, in that we expect to deliver exceptional cash on cash
returns and attractive capital growth through asset management and
development. We are confident that this acquisition will add
significant long term value for our shareholders."
- ends -
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief Executive
Mark Davies, Finance Director
Bell Pottinger Tel: 020 3772 2500
David Rydell / James Newman / David Bass
Liberum Tel: 020 3100 2000
Richard Crawley / Jamie Richards
Peel Hunt LLP Tel: 020 7418 8900
Capel Irwin / Alex Vaughan / Hugh Preston
About NewRiver
NewRiver Retail Limited is an AIM listed REIT. The Company is a
specialist real estate investor, asset manager and developer
focused solely on the UK retail sector. At the close of 2014
NewRiver Retail was named Property Company of the Year - Retail
& Leisure at the Estates Gazette Awards.
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 GBP918 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 1,440 occupiers, a total of over 6.0
million sq. ft., total annual footfall of over 121 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
ACQPJMLTMBATBJA
(END) Dow Jones Newswires
August 24, 2015 02:00 ET (06:00 GMT)
Newriver Reit (LSE:NRR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Newriver Reit (LSE:NRR)
Historical Stock Chart
From Apr 2023 to Apr 2024