NewRiver Retail acquires four retail parks for £17.3m

11th Jun 2014 08:52

AIM-listed property group NewRiver Retail has acquired four retail park properties, called the Linear Portfolio, for £17.3m.The properties, which were purchased from a UK institution, compromise 196,300 sq ft of lettable space, and is expected to generate annual rent of £1.6m. The buildings have a net initial yield of 9.12%, and are currently being let to six tenants, with an unexpired lease term of 7.4 years. The Linear Portfolio includes Clough Road Retail Park, Poundstretcher Wymondham, Halfords Paisley, and Mount Street Retail Park, which are all located across the UK.Property Director Allan Lockhart said: "We are delighted to complete this significant acquisition, which with the introduction of gearing, has the potential to deliver cash on cash returns of 12% per annum underpinned by a stable income stream."As of 09:28 the share price had risen 0.48% to 314p.WS