// Intu continues selling off property with Sprucefield Retail Park deal
// NewRiver acquired the Lisburn park for £40 million
// Intu CEO says disposals are “a key element” of fixing the balance sheet
Retail property giant Intu has sold Sprucefield Retail Park to NewRiver for £40 million.
The deal for the Lisburn, Northern Ireland retail park represents a net initial yield of 8.7 per cent, in line with a valuation in June 2019.
Once completed, the acquisition will generate an additional £3.7 million of annualised net property income, NewRiver said on Monday.
Spanning 47 acres, the site comprises of 231,000 sq ft of retail space anchored by Sainbury’s and B&Q.
“We announced our new strategy at the interim results in July. A key element of this is fixing the balance sheet which includes creating liquidity through disposals. We are pleased to conclude this transaction, which along with the part-disposal of Intu Derby and other sundry asset sales in 2019 brings the year to date disposals total to £268m,” said Intu chief executive Matthew Roberts.
“This high-quality asset will generate £3.7m of annualised net property income, which will be highly accretive to underlying funds from operations and significant in improving our dividend cover, which is our key priority,” said NewRiver chief executive Allan Lockhart.