NewRiver claims compelling opportunity for retail real estate

4th Jul 2013 10:36

Retail property investor NewRiver Retail has impressed investors with a bullish statement at its annual general meeting.Despite the often-claimed moribund outlook for High Street retail, Chairman Paul Roy reported the sector was dynamic and remained crucial to the UK economy.With acquisition yields historically high and borrowing costs historically low, he said "NewRiver continues to source compelling buying opportunities and is well-positioned to take full advantage of these favourable conditions".The AIM and Channel Islands-listed outfit has identified a pipeline of opportunities that it said it would would seek to complete through standalone acquisitions, joint ventures and co-investments.Since its March 31st year-end, the real estate investment trust (REIT) has completed a "transformational" £67m fundraising to take advantage of these pipeline opportunities. Roy asserted that the significant level of demand for the fundraising demonstrated "a strong vote of confidence in the company's management and proven business strategy". He noted that four years since its flotation NewRiver's has grown to become the fourth largest owner and operator in the UK by number of retail assets over 50,000 square feet. NewRiver owns or manages 23 shopping centres and other town centre assets with a current capital value of roughly £400m.In the last financial year REIT increased pre-tax profit 7.0% to £5.2m and its dividend 7.0% to 16p per share. Shares in NewRiver Retail were up 2.3% to 222.5p at 11:05 on Thursday. OH