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.
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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.
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