NewRiver REIT PLC Disposal of 90% of Sprucefield Retail Park (6584A)
September 30 2020 - 11:10AM
UK Regulatory
TIDMNRR
RNS Number : 6584A
NewRiver REIT PLC
30 September 2020
NewRiver REIT plc
("NewRiver" or the "Company")
Disposal of a 90% interest in Sprucefield Retail Park for
GBP34.7 million
NewRiver is pleased to announce the disposal of 90% of its
interest in Sprucefield Retail Park, Lisburn, to its joint venture
partner BRAVO Strategies III LLC ("BRAVO") for gross proceeds of
GBP34.7 million, reflecting a net initial yield of 9.0% and a 5%
discount to its March 2020 valuation. This transaction increases
the Company's total completed disposals so far in FY21 to GBP50.4
million. On a pro-forma basis, these disposals improve the
Company's 31 March 2020 LTV of 47.1% by 210 bps, before factoring
in valuation and cash movements since year end.
NewRiver will retain a 10% interest in the asset (NewRiver
share: GBP3.9 million), and will benefit from 10% of the net rental
income (NewRiver share: GBP0.4 million per annum). NewRiver has
also been appointed as asset manager, in return for a management
fee calculated by reference to the gross rental income of the
asset, and will receive a promote based on financial
performance.
This transaction brings NewRiver's total disposals completed,
exchanged or currently under offer to GBP65.7 million, which in
aggregate represent a 3% discount to March 2020 valuations. This
marks further significant progress on the figures of GBP30.3
million provided in the Full Year Results announcement on 18 June
2020 and GBP52.5 million in the Trading Update of 14 August 2020,
and is in-line with the Company's strategy to dispose of GBP80
million to GBP100 million of assets this financial year. The
Company is continuing active discussions in relation to a number of
further disposals, which are currently targeted for completion in
the second half of FY21.
NewRiver'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. Following this transaction
announced today, this joint venture relationship has made
acquisitions totalling GBP143.7 million (NewRiver share: GBP38.5
million).
The transaction was supported by GBP20 million of debt financing
provided by AIB, representing a new key banking relationship for
NewRiver.
Allan Lockhart, Chief Executive commented: "We are pleased to
complete this sale, further expanding and strengthening our joint
venture relationship with BRAVO as part of NewRiver's capital
partnerships strategy. One of our key priorities for this financial
year is to dispose of GBP80 million to GBP100 million 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."
For further information
NewRiver REIT plc +44 (0)20 3328 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Tom Loughran (Head of Investor
Relations)
Finsbury +44 (0)20 7251 3801
Gordon Simpson
James Thompson
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing and developing
essential retail and leisure assets throughout the UK.
Our GBP1.2 billion portfolio covers 9 million sq ft and
comprises 33 community shopping centres, 25 conveniently
located
retail parks and over 700 community pubs. We hand-picked our
assets to deliberately focus on occupiers providing
essential goods and services, and avoid structurally challenged
sub-sectors such as department stores, mid-market
fashion and casual dining. This focus, combined with our
affordable rents and desirable locations, delivers sustainable and
growing returns for our shareholders, while our active approach to
asset management and inbuilt 2.5 million sq ft
development pipeline provide further opportunities to extract
value from our portfolio.
NewRiver has a Premium Listing on the Main Market of the London
Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further
information.
LEI Number: 2138004GX1VAUMH66L31
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