NewRiver and BRAVO Strategies III LLC have completed of the disposal of Poole Retail Park in Dorset for €69m (£58m). This pricing represents a net initial yield of 6.6% (based on assumed purchaser's costs of 1.8%), a 7.4% premium to the latest valuation and is 30% higher than when NewRiver and BRAVO acquired the asset in October 2019. Since the acquisition, the asset has generated an IRR of 21.6%.
In the two years since acquisition NewRiver has completed several successful initiatives at the Retail Park. These include securing a 10-year lease extension and over 60% rental uplift with Homebase, which had undergone a CVA prior to our acquisition of the Retail Park. We also agreed to new leases with existing occupiers Boots and Next and introduced Bensons for Beds to the park on a 10-year lease, replacing a former Laura Ashley unit. In February of this year we also completed a new 10-year lease for a 30,400ft² unit to Sports Direct.
Allan Lockhart, Chief Executive commented: "This disposal demonstrates the strong returns that can be generated from our experienced asset management platform through capital partnerships. In a short space of time, we have completed numerous leasing transactions at the Retail Park which have improved the customer offer and supported the asset's income and valuation. We are delighted to have secured such good pricing on this disposal which demonstrates the inherent liquidity in our portfolio."
