REG - NewRiver REIT plc - Disposal of Regeneration Shopping Centre, Cowley

Newriver ReitAnnouncement

22/12/2021 07:00

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RNS Number : 4173W  NewRiver REIT PLC  22 December 2021

NewRiver REIT plc

("NewRiver" or the "Company" or the "Group")

Generating returns through Regeneration activity -

Disposal of Templars Square Shopping Centre, Cowley for £38.8 million

 

NewRiver is pleased to announce the exchange of contracts for the disposal of
its Regeneration Shopping Centre in Cowley, Oxford to Redevco B.V., a leading
real estate investment manager and developer, for gross proceeds of £38.8
million. This reflects a 4.9% premium to the asset's latest valuation.

 

NewRiver acquired Templars Square Shopping Centre in Cowley for £24.6 million
in December 2012. In November 2021 Oxford City Council released the planning
decision notice enabling 236,000 sq ft of mixed-use regeneration. The
consented scheme includes 226 new homes and major improvements to the public
realm.

 

The disposal is conditional on Oxford City Council's freeholder approval to
assign the headlease, release from a previous agreement and expiry of the
six-week judicial review period in relation to the planning decision notice.
The judicial review period has now expired.

 

Of the gross proceeds, £5.5 million is to be held in escrow as a rental and
service charge guarantee and to cover the purchaser's costs of agreeing a new
headlease. NewRiver expects to recover a significant proportion of these
funds. The disposal, excluding the escrow amount, reflects a net initial yield
of 6.3%. The consideration will be satisfied in cash and the disposal is
expected to complete in the first quarter of 2022.

 

Proceeds will be used to reduce net debt and, on completion, this disposal
will improve the Group's pro forma 30 September 2021 LTV of 38.0% by a further
300 bps.

 

Allan Lockhart, Chief Executive commented: "We are pleased to agree this sale
which, as we have already demonstrated through our recent disposal of Blenheim
Shopping Centre in Penge, highlights the significant value we can create
through our Regeneration expertise. On completion this disposal will further
improve our LTV, strengthening our position as we execute our resilient retail
strategy."

 

For further information

 

 NewRiver REIT plc                             +44 (0)20 3328 5800
 Allan Lockhart (Chief Executive)

 Will Hobman (Chief Financial Officer)
 Emily Meara (Head of Investor Relations)

 

 Finsbury               +44 (0)20 7251 3801
 Gordon Simpson

 James Thompson

 

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 £0.7 billion portfolio covers 8 million sq ft and comprises 29 community
shopping centres and 18 conveniently located retail parks. We have hand-picked
our portfolio to focus on occupiers providing essential goods and services and
to support the development of thriving communities across the UK, while
deliberately avoiding structurally challenged sub-sectors such as department
stores and mid-market fashion. Our objective is to own and manage the most
resilient retail portfolio in the UK, focused on retail parks, core shopping
centres, and regeneration opportunities in order to deliver stable income and
capital growth to our investors.

 

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

 

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