Last checked at 22 Dec 2021 07:00
NewRiver REIT plc
("NewRiver" or the "Company" or the "Group")
Generating returns through Regeneration activity -
Disposal of Templars Square Shopping Centre, Cowley for £38.8 million
NewRiver is pleased to announce the exchange of contracts for the disposal of its Regeneration Shopping Centre in Cowley, Oxford to Redevco B.V., a leading real estate investment manager and developer, for gross proceeds of £38.8 million. This reflects a 4.9% premium to the asset's latest valuation.
NewRiver acquired Templars Square Shopping Centre in Cowley for £24.6 million in December 2012. In November 2021 Oxford City Council released the planning decision notice enabling 236,000 sq ft of mixed-use regeneration. The consented scheme includes 226 new homes and major improvements to the public realm.
The disposal is conditional on Oxford City Council's freeholder approval to assign the headlease, release from a previous agreement and expiry of the six-week judicial review period in relation to the planning decision notice. The judicial review period has now expired.
Of the gross proceeds, £5.5 million is to be held in escrow as a rental and service charge guarantee and to cover the purchaser's costs of agreeing a new headlease. NewRiver expects to recover a significant proportion of these funds. The disposal, excluding the escrow amount, reflects a net initial yield of 6.3%. The consideration will be satisfied in cash and the disposal is expected to complete in the first quarter of 2022.
Proceeds will be used to reduce net debt and, on completion, this disposal will improve the Group's pro forma 30 September 2021 LTV of 38.0% by a further 300 bps.
Allan Lockhart, Chief Executive commented: "We are pleased to agree this sale which, as we have already demonstrated through our recent disposal of Blenheim Shopping Centre in Penge, highlights the significant value we can create through our Regeneration expertise. On completion this disposal will further improve our LTV, strengthening our position as we execute our resilient retail strategy."
For further information
NewRiver REIT plc | +44 (0)20 3328 5800 | ||
Allan Lockhart (Chief Executive) Will Hobman (Chief Financial Officer) | |||
Emily Meara (Head of Investor Relations) |
Finsbury | +44 (0)20 7251 3801 | |||
Gordon Simpson James Thompson |
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About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK.
Our £0.7 billion portfolio covers 8 million sq ft and comprises 29 community shopping centres and 18 conveniently located retail parks. We have hand-picked our portfolio to focus on occupiers providing essential goods and services and to support the development of thriving communities across the UK, while deliberately avoiding structurally challenged sub-sectors such as department stores and mid-market fashion. Our objective is to own and manage the most resilient retail portfolio in the UK, focused on retail parks, core shopping centres, and regeneration opportunities in order to deliver stable income and capital growth to our investors.
NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31