New River Retail buys UK shopping malls for 24m pounds

4th Dec 2013 07:54

Property group NewRiver Retail has bought three UK shopping centres for about 24m pounds.Real estate investment trust NewRiver has acquired the portfolio in Scotland and north-east England from its administrators Zolfo Cooper.Zolfo appointed NewRiver as asset manager of the estate when it was placed into administration in December 2012. NewRiver said there are opportunities to significantly improve the income and capital value of the assets.The portfolio comprises the 99,500 sq ft Newkirkgate Shopping Centre in Edinburgh, the 183,046 sq ft Beacon Centre in North Shields, Tyne & Wear and the 25,000 sq ft La Porte Precinct in Grangemouth, near Falkirk.The three centres have 77 tenancies including national retailers such as Wilkinson, Boots, WH Smith, Home Bargains and New Look.The acquisition is being funded through the company's Bravo II joint venture partnership, a fund advised and managed by Pacific Investment Management. Both parties are taking a 50% equity stake in the centres.NewRiver Property Director Allan Lockhart said: "After nearly 12 months of managing these assets on behalf of the administrator, we are delighted to have acquired this portfolio at an attractive yield of more than 10%."PW