£26.5m deal sees NewRiver acquire two retail parks

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NewRiver

NewRiver Retail Estate Investment Trust (REIT) has acquired two retail parks in Cardiff and Dewsbury in a deal worth £26.5 million.

According to Property Week, NewRiver has completed the purchase of Valegate Retail Park in Cardiff from an administrator for £12.2 million, representing a net yield of 10 per cent.

The 93,600sq ft park is anchored by discount retail giant TK Maxx, along with six other retail units.

The trust also purchased the 68,400sq ft Rishworth Centre and the adjoining 23,700sq ft Railway Street Retail Park in Dewsbury for £14.3 million, representing a net yield of 7.9 per cent.

Retailers already trading there include Next, Pets At Home and Iceland.

“These acquisitions are in line with our strategy of acquiring fundamentally good quality assets with untapped enhancement opportunities which NewRiver is well placed to exploit as an active and specialist retail asset manager,” NewRiver property director Allan Lockhart said.

“We are confident of significantly improving the retailer profile and the sustainability and quality of underlying cash flows so that these assets will deliver attractive returns for our shareholders.

“Importantly we have retained our capital discipline on entry price, acquiring these assets at a blended yield of nine per cent.”

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