Disposal of a 90% interest in Sprucefield Retail Park

NewRiver is pleased to announce the disposal of 90% of its interest in Sprucefield Retail Park, Lisburn, to its joint venture partner BRAVO Strategies III LLC (“BRAVO”) for gross proceeds of £34.7 million, reflecting a net initial yield of 9.0% and a 5% discount to its March 2020 valuation. This transaction increases the Company’s total completed disposals so far in FY21 to £50.4 million. On a pro-forma basis, these disposals improve the Company’s 31 March 2020 LTV of 47.1% by 210 bps, before factoring in valuation and cash movements since year end.

NewRiver will retain a 10% interest in the asset (NewRiver share: £3.9 million), and will benefit from 10% of the net rental income (NewRiver share: £0.4 million per annum). NewRiver has also been appointed as asset manager, in return for a management fee calculated by reference to the gross rental income of the asset, and will receive a promote based on financial performance.

This transaction brings NewRiver’s total disposals completed, exchanged or currently under offer to £65.7 million, which in aggregate represent a 3% discount to March 2020 valuations. This marks further significant progress on the figures of £30.3 million provided in the Full Year Results announcement on 18 June 2020 and £52.5 million in the Trading Update of 14 August 2020, and is in-line with the Company’s strategy to dispose of £80 million to £100 million of assets this financial year. The Company is continuing active discussions in relation to a number of further disposals, which are currently targeted for completion in the second half of FY21.

NewRiver’s current joint venture relationship with BRAVO was formed in May 2019, with the aim of acquiring and managing a portfolio of retail parks in the UK. Following this transaction announced today, this joint venture relationship has made acquisitions totalling £143.7 million (NewRiver share: £38.5 million). 

The transaction was supported by £20 million of debt financing provided by AIB, representing a new key banking relationship for NewRiver.

Allan Lockhart, Chief Executive commented: “We are pleased to complete this sale, further expanding and strengthening our joint venture relationship with BRAVO as part of NewRiver’s capital partnerships strategy. One of our key priorities for this financial year is to dispose of £80 million to £100 million of assets, in order to improve our LTV in-line with Company guidance. This sale means we are ahead of target at the end of the first half, and we continue to add to our disposal pipeline.”

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For further information

Tom Loughran, Head of Investor Relations (NewRiver)
+44 (0)20 3328 5800

Lucy Mitchell, Director of Communications & PR (NewRiver)                       
+44 (0)20 3328 5800

Gordon Simpson/James Thompson (Finsbury)                                                 
+44 (0)20 7251 3801

About NewRiver

NewRiver REIT plc (‘NewRiver’) is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK.

Our £1.1 billion portfolio covers 9 million sq ft and comprises 33 community shopping centres, 24 conveniently located retail parks and around 700 community pubs. We hand-picked our assets to deliberately focus on occupiers providing essential goods and services, and avoid structurally challenged sub-sectors such as department stores, mid-market fashion and casual dining. This focus, combined with our affordable rents and desirable locations, delivers sustainable and growing returns for our shareholders, while our active approach to asset management and inbuilt 2.6 million sq ft development pipeline provide further opportunities to extract value from our portfolio.

NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.

LEI Number: 2138004GX1VAUMH66L31