NewRiver Retail has entered into a joint venture with LVS Luxembourg to purchase a portfolio of five UK shopping centres, the company announced Wednesday.
The real estate retail investor has acquired a 10% interest in the project, with the remaining 90% held by LVS.
The companies have exchanged contracts to procure the portfolio from Zurich Assurance Limited for a total consideration of £85 million.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The shopping centres are comprise by three freehold and two long-leasehold shopping centres located in Leamington Spa, Cowley, Kilmarnock, Bridlington and Hull at a net initial yield of 9.7%.
The total letting area covers 1 million square feet and 205 tenancies which include HS, Boots, Sainsbury's, Poundland and Wilkinson.
NewRiver stated: "In line with the Company's core strategy of active asset management, NewRiver has also identified a significant level of value-enhancing opportunities across the portfolio. Subject to completion, NewRiver will receive a projected annual fee of approximately £0.4m for management of the assets being acquired by the Joint Venture."
Shares were up 0.37% to 205.00p at 14:35 Wednesday.
RD
-
The industry at the heart of global technologyThe semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
-
What are shareholder voting rights and why do they matter?If you hold shares in a company, the chances are they’ll come with voting rights. But how do you exercise your right to vote? And is your fund manager taking it seriously?
