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NewRiver REIT, Bravo sell Dorset retail park for £58m
23rd Dec 2021 07:46
(Sharecast News) - NewRiver REIT said on Thursday that it and Bravo Strategies have completed the disposal of Poole Retail Park in Dorset for £58m.
This represents a net initial yield of 6.6%, a 7.4% premium to the latest valuation and is 30% higher than when NewRiver and Bravo bought the asset in October 2019.
In the two years since acquisition, NewRiver said it has completed several successful initiatives at the retail park. These include securing a 10-year lease extension and over 60% rental uplift with Homebase, which had undergone a CVA prior to the acquisition.
It also agreed new leases with existing occupiers Boots and Next and introduced Bensons for Beds to the park on a 10-year lease, replacing a former Laura Ashley unit. In February of this year, the company also completed a new 10-year lease for a 30,400 sq ft unit to Sports Direct, replacing a former DW Sports unit.
Chief executive Allan Lockhart said: "This disposal demonstrates the strong returns that can be generated from our experienced asset management platform through capital partnerships. In a short space of time we have completed numerous leasing transactions at the Retail Park which have improved the customer offer and supported the asset's income and valuation.
"We are delighted to have secured such good pricing on this disposal which demonstrates the inherent liquidity in our portfolio."
This represents a net initial yield of 6.6%, a 7.4% premium to the latest valuation and is 30% higher than when NewRiver and Bravo bought the asset in October 2019.
In the two years since acquisition, NewRiver said it has completed several successful initiatives at the retail park. These include securing a 10-year lease extension and over 60% rental uplift with Homebase, which had undergone a CVA prior to the acquisition.
It also agreed new leases with existing occupiers Boots and Next and introduced Bensons for Beds to the park on a 10-year lease, replacing a former Laura Ashley unit. In February of this year, the company also completed a new 10-year lease for a 30,400 sq ft unit to Sports Direct, replacing a former DW Sports unit.
Chief executive Allan Lockhart said: "This disposal demonstrates the strong returns that can be generated from our experienced asset management platform through capital partnerships. In a short space of time we have completed numerous leasing transactions at the Retail Park which have improved the customer offer and supported the asset's income and valuation.
"We are delighted to have secured such good pricing on this disposal which demonstrates the inherent liquidity in our portfolio."