NewRiver Retail adds major Dumfries retail park

(ShareCast News) - Real estate investment trust NewRiver Retail announced on Wednesday that it has completed the acquisition of Cuckoo Bridge Retail Park in Dumfries from an unnamed "large listed property company," for a total of £20.2m funded from existing cash resources.The AIM-traded firm said the acquisition equates to a net initial yield of 7.05%, an equivalent yield of 7.87% and a reversionary yield of 7.93%, with net rental income at purchase of £1.5m per annum.Its board described Cuckoo Bridge as the dominant retail park in Dumfries, in close proximity to the A75, and a strong catchment area located within a 30 minute drive from Dumfries and the areas to the north and west, with a population of nearly 90,000.The park is 100% occupied, comprising 130,000 square feet of income-generating space across seven retail units, with a weighted average lease expiry of 8.32 years and 550 car park spaces.NewRiver said the park is also adjacent to a 24 hour Tesco supermarket, and is anchored by Homebase with other retailers including Dunelm, Poundstretcher, Laura Ashley, B&M, KFC and Costa Coffee."We are delighted to announce the acquisition of Cuckoo Bridge Retail Park, extending our growing and sustainable income stream, underpinned by long-term covenants," said NewRiver property director Allan Lockhart."The acquisition demonstrates our ability to grow the portfolio through our carefully selected acquisitions in line with our focused business model.""Cuckoo Bridge presents excellent opportunities to generate attractive cash on equity returns by driving income and capital growth through the company's active asset management and risk-controlled development," Lockhart explained.