NewRiver Retail Buys Newcastle Retail Assets For GBP4.2M

11th Jun 2010 07:36

LONDON (Dow Jones)--Retail property group NewRiver Retail Ltd. (NRR.LN) said Friday it will pay GBP4.2 million for two retail units in Newcastle-upon-Tyne that it will let to Bank Fashion and jeweler H. Samuel. NewRiver Retail said the property is in a prime spot on Northumberland Street, one of the city's main retailing locations, and provides about 20,000 square feet of retailing space, subdivided in to two units. Contracts have been exchanged to let the larger unit to Bank Fashion Ltd., which is owned by U.K. sportswear retailer JD Sports Fashion PLC (JD.LN), while H Samuel will take the smaller unit. NewRiver said the price it will pay for the leasehold reflects a net initial yield of about 9.6%. It bought the property from the receivers of Stylo Barratt Properties, following footwear retail Barratts' administration early last year. The deal follows NewRiver's announcement Monday that it will pay GBP19 million for a portfolio of six large retail units in the U.K. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] (END) Dow Jones Newswires June 11, 2010 02:36 ET (06:36 GMT)