NewRiver has completed the acquisition of two retail parks for a combined consideration of €29.8m (£26.5m), representing an initial yield of 8.9% and a capital value of just €159 (£141) per ft². Both retail parks have good occupier demand and present NewRiver, as a specialist retail asset manager, with the opportunity to add value through a variety of identified active asset management initiatives.
The Rishworth Centre and Railway Street Retail Park, Dewsbury
The Rishworth Centre and adjoining Railway Street Retail Park were acquired from an institutional investor for €16.13m (£14.3m), which equates to a net initial yield of 7.9%. The assets have an affordable average rent of €14.64 (£12.98) per ft² and a weighted average unexpired lease term of 5.7 years.
The assets are located in the main retail warehouse concentration in Dewsbury, West Yorkshire, adjacent to a Sainsburys superstore and close to the local civic amenities and public transport links of Dewsbury town centre. The 68,400 ft² Rishworth Centre comprises four retail units and 265 free car parking spaces, and the 23,700 ft² Railway Street Retail Park comprises three retail units and 116 free car parking spaces. The occupier line-up includes Next, Pets At Home and Iceland.
The Valegate Retail Park, Cardiff
The Valegate Retail Park was acquired from an administrator for €13.76m (£12.2m,) which equates to a net initial yield of 10.0%. The asset has affordable average rents of €15.58 (£13.82) per ft² and, with a weighted average unexpired lease term of only 3.1 years, presents NewRiver with a number of immediate active asset management opportunities.
The asset is prominently located on the edge of Cardiff City Centre, adjacent to the Culverhouse Cross intersection which is one of the main link roads to the M4 and a very strong retail location. The asset sits within the main concentration of convenience retailing and is directly opposite a Tesco superstore and an owner-occupied Marks & Spencer. The 93,600 ft² retail park comprises seven units and 325 free car parking spaces and is anchored by TK Maxx.
Allan Lockhart, Property Director commented: "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. 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 9%."
