NewRiver REIT
plc
("NewRiver" or the "Company")
Acquisition of Ellandi
Management Limited
NewRiver is pleased to announce the
acquisition of Ellandi Management Limited ('Ellandi'), an asset and
development management business focused on UK retail and
regeneration. This acquisition provides NewRiver's existing Capital
Partnership business with additional scale and diversification, as
well as introducing complementary experience of managing
destination shopping centres and regeneration projects, and is
consistent with NewRiver's strategy to deliver earnings growth in a
capital-light way.
Allan Lockhart, Chief Executive, commented:
"The acquisition of Ellandi supports our ambitions
to expand our Capital Partnerships business and grow its fee
income. We have watched the impressive growth of Ellandi over the
last 16 years, despite limited capital resources, which has been in
no small part due to the entrepreneurial energy and expertise of
Morgan, Mark and their team.
We believe there will be
considerable opportunities in the retail real estate market to
accelerate the growth of our business from this point. By bringing
together two high-quality teams with complementary skills and
experience in asset management and regeneration, together with the
balance sheet resources we have available, we are well positioned
to participate in these opportunities, both on the balance sheet
and through Capital Partnerships."
Strategic rationale and additional information on
Ellandi
The acquisition is aligned with
NewRiver's strategy to expand its Capital Partnership business over
the medium term, leveraging its position as one of the largest
specialist retail real estate asset managers in the UK to partner
with new and existing owners of retail property, who recognise the
importance of track record and specialism in this highly
operational asset class with the potential to deliver compelling
forward-looking returns, while maintaining significant cash
resources to fund balance sheet growth opportunities.
The two co-founders and owners of
Ellandi, Morgan Garfield and Mark Robinson, will join NewRiver as
Head of Capital Partnerships and Head of Regeneration,
respectively. Morgan and Mark will also join NewRiver's Executive
Committee. The Ellandi business brings with it a portfolio of 16
shopping centre asset management mandates, covering over 6.3
million sq ft, with 10 different partners. Ellandi also brings
extensive experience working with public sector owners to deliver
regeneration, with current projects including the regeneration of
Blackpool Town Centre and Strand Shopping Centre in Bootle. During
the year ended 30 April 2024, Ellandi's fee income was £5.7
million1 and EBITDA was £1.1 million1. The
acquisition has been made for an initial cash consideration of £5
million, with additional cash consideration of up to £4 million
subject to EBITDA performance, including realising savings through
shared services, over a three year earn out period.
The combined Capital Partnership
business will have significantly increased scale, with Assets Under
Management ("AUM") of c.£1.5 billion across a portfolio of 21
shopping centres and 18 retail parks, with 13 different partners.
Including NewRiver's wholly owned portfolio of retail assets, this
increases to total AUM of c.£2.0 billion across a portfolio of 44
shopping centres and 29 retail parks and an existing fee income
stream of £8.2 million2.
Mark Robinson, Co-Founder, Ellandi
added: "Morgan and I are extremely
proud of what the team at Ellandi have achieved to date in
delivering sustainable change to the UK's retail places and believe
this transaction creates an exciting opportunity to combine two
market leading retail asset management businesses with shared
growth ambitions. Together we will bring unrivalled insights into
UK consumer and retailer trends through the extensive data of our
enlarged footprint. NewRiver is passionate about retail and
recognises the important role it plays at the heart of communities,
as well as having a similar culture and shared values. I look
forward to our business becoming part of the NewRiver team and
applying our combined expertise in the sector."
Notes
1.
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Consolidated Ellandi Management
Limited and Ellandi LLP
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2.
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The sum of Consolidated Ellandi
Management Limited and Ellandi LLP fee income for year ended 30
April 2024 and NewRiver REIT plc Asset management fees for the year
ended 31 March 2024
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For
further information
NewRiver REIT plc
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+44
(0)20 3328 5800
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Allan Lockhart (Chief
Executive)
Will Hobman (Chief Financial
Officer)
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FTI
Consulting
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+44
(0)20 3727 1000
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Dido Laurimore
Giles Barrie
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About NewRiver
NewRiver REIT plc ('NewRiver') is a
leading Real Estate Investment Trust specialising in buying,
managing and developing resilient retail assets throughout
the UK.
Our £0.54
billion UK wide portfolio covers 6.1 million sq ft and
comprises 24 community shopping centres and 12 conveniently located
retail parks occupied by tenants predominately focused on essential
goods and services. In addition we manage 18 retail parks and 21
shopping centres on behalf of Capital Partners, taking our total
Assets Under Management to £2 billion. Our objective is to own and
manage the most resilient retail portfolio in the UK, focused
on retail parks, core shopping centres, and regeneration
opportunities in order to deliver long-term attractive recurring
income returns and capital growth for our shareholders.
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
Forward-looking statements
The information in this announcement
may include forward-looking statements, which are based on current
projections about future events. These forward-looking statements
reflect the directors' beliefs and expectations and are subject to
risks, uncertainties and assumptions about NewRiver REIT plc (the
'Company'), including, amongst other things, the development of its
business, trends in its operating environment, returns on
investment and future capital expenditure and acquisitions, that
could cause actual results and performance to differ materially
from any expected future results or performance expressed or
implied by the forward-looking statements.
None of the future projections,
expectations, estimates or prospects in this announcement should be
taken as forecasts or promises nor should they be taken as implying
any indication, assurance or guarantee that the assumptions on
which such future projections, expectations, estimates or prospects
have been prepared are correct or exhaustive or, in the case of the
assumptions, fully stated in the announcement. As a result, you are
cautioned not to place reliance on such forward-looking statements
as a prediction of actual results or otherwise. The information and
opinions contained in this announcement are provided as at the date
of this document and are subject to change without notice. No one
undertakes to update publicly or revise any such forward looking
statements. No statement in this announcement is or is intended to
be a profit forecast or profit estimate or to imply that the
earnings of the Company for the current or future financial years
will necessarily match or exceed the historical or published
earnings of the Company.