REG - NewRiver REIT plc - Final disposals within Napier 50/50 Joint Venture

Newriver ReitAnnouncement

28/06/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230628:nRSb1176Ea&default-theme=true

RNS Number : 1176E  NewRiver REIT PLC  28 June 2023

 

NewRiver REIT plc

("NewRiver" or the "Company")

Final disposals within Napier 50/50 Joint Venture

 

NewRiver and PAF Lux SCA, SICAV RAIF, acting on behalf of its compartment PAF
- Bravo III Compartment ("BRAVO") are pleased to announce the completion of
the disposal of Kittybrewster Retail Park in Aberdeen and Glendoe and Telford
Retail Parks in Inverness for £62.6 million (NRR share: £31.3 million) to RI
UK 1 Limited. The assets generated net rental income of £5.7 million (NRR
share: £2.9 million) during FY23 and had a gross asset value of £64.4
million (NRR share: £32.2 million) at 31 March 2023. The sale proceeds will
be used to reduce NewRiver's net debt as at 31 March 2023 by £31.8 million
(net cash receipt of £19.8 million and repayment of secured debt of £12.0
million) to £169.5 million on a proforma basis which reduces NewRiver's LTV
as at 31 March 2023 to 30.3% on a proforma basis.

 

The disposal comprises the final properties in the Napier Joint Venture,
bringing the total sale receipts from Napier to £76.0 million, reflecting a
blended net initial yield of 7.4%. Total receipts are 26% higher than the
price paid when NewRiver and BRAVO acquired the portfolio in June 2019 from a
UK Institution for £60.5 million, which reflected a blended net initial yield
of 9.8%. Since acquisition the Napier Joint Venture has generated an IRR of
16% and following the disposal of Napier, NewRiver and BRAVO continue to own
two assets within a separate venture.

 

Allan Lockhart, Chief Executive commented: "The Napier Joint Venture is a
great example of why we like retail parks and working in capital partnerships.
Over our four years of ownership and management, we have been able to
crystallise compelling returns for ourselves and our partner by utilising our
specialist retail platform at each stage of the process,  all the way from
disciplined stock selection to successful delivery of asset management plans
in order to secure a successful exit. In addition, the disposal means that the
strength of NewRiver's balance sheet position is further improved, with
proforma LTV now at 30.3% and significant cash resources giving maximum
flexibility and optionality around capital allocation."

 

NewRiver has completed several successful initiatives across the portfolio,
with highlights including:

 

Kittybrewster Retail Park, Aberdeen

 

 ●    Let 10,000 sq ft unit which was vacant at acquisition to Wren Kitchens on 10
      year lease
 ●    Following Harveys administration in 2020, quickly re-let 10,000 sq ft unit to
      Dreams on 10 year term
 ●    Introduced JD Sports to the park in a 9,600 sq ft unit on a 10 year lease
 ●    Secured new 10 year term at lease renewal with TK Maxx lease on 16,700 sq ft
 ●    Actioned historic Halfords rent review shortly after acquisition increasing
      rent by 34%
 ●    Increased McDonald's rent by 11% at rent review
 ●    Re-geared Oak Furnitureland on new 10 year lease, extending expiry from 2024
      to 2030

 

Glendoe and Telford Retail Parks, Inverness

 

 ●    Surrendered Curry's lease (not trading from unit at acquisition) on 20,000 sq
      ft unit, for a significant premium and simultaneously completed new lettings
      to Bensons for Beds and Food Warehouse, having secured planning consent for
      food, on 10 year terms
 ●    Actioned landlord break on Poundstretcher and re-let 15,000 sq ft unit to
      Poundland on new 5 year lease
 ●    Completed a reversionary lease with B&M adding 10 years to their existing
      term resulting in a June 2034 expiry
 ●    Let 10,000 sq ft void unit at acquisition to the Department for Work &
      Pensions
 ●    Re-geared Oak Furnitureland and Go Outdoors on new 10 year leases

 

Units at Kingsway East Retail Park, Dundee (Sold in March 2021)

 

 ●    Sold property to a special purchaser, an existing tenant, at premium pricing
      having agreed a deal with an alternative tenant to occupy their unit. The
      property also included a 34,500 sq ft unit let to B&M

 

Wakes Retail Park, Newport, Isle of Wight (Sold in March 2022)

 

 ●    Downsized Curry's from 30,000 to 15,000 sq ft in return for a surrender
      premium, extending their term by 5 years with the remainder, on which food
      planning consent was obtained, re-let to Food Warehouse on a 10 year term
 ●    Completed a lease re-gear with Pets at Home, extending their lease term by 5
      years

 

 

 

 

For further information

 

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

 Will Hobman (Chief Financial Officer)
 Lucy Mitchell (Communications & Investor Relations)

 

 FGS Global             +44 (0)20 7251 3801
 Gordon Simpson

 James Thompson

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of the law of England and Wales by virtue
of the European Union (Withdrawal) Act 2018. This announcement has been
authorised for release by the Board of Directors.

 

About NewRiver

 

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

 

Our £0.6 billion UK wide portfolio covers 7 million sq ft and comprises 26
community shopping centres and 14 conveniently located retail parks occupied
by tenants predominately focused on essential goods and services. 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 long-term attractive recurring income returns and capital
growth for our shareholders.

 

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISDGGDLIDDDGXR