NewRiver Regulatory News (NRR)

("NewRiver" or "the Company")

Portfolio Update

NewRiver Retail Limited (AIM and CISX: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, today announces the following update on portfolio activities.

Disposal of 23-24 Market in Great Yarmouth, Norfolk

NewRiver is pleased to announce that it has exchanged contracts to sell the freehold interest of 23-24 Market Place, Great Yarmouth, in Norfolk for a total consideration of £3.38 million in cash to a private investor, reflecting a net initial yield of approximately 8.25%.

In August 2011 when NewRiver acquired the property, it was let to Life & Style Retail Ltd (in administration and no longer trading from the premises) at £200,000 per annum. Simultaneously with the purchase, NewRiver negotiated an agreement with Poundland, with which NewRiver has a strong existing relationship, for a new 10 year lease at £295,000 per annum, reflecting a net initial yield on purchase of 11.2%.

This opportunistic acquisition by NewRiver, located in a prime retailing position, delivered value creation immediately upon purchase and the unlevered IRR based on this disposal is 43.2% well exceeding the Company's minimum geared target of 15%

Lease renewal at Northumberland Street, Newcastle Upon Tyne

NewRiver has signed a new ground lease for 125 years on its Northumberland Street property in Newcastle upon Tyne. The property was acquired by NewRiver in June 2010, for a total consideration of £4.2m and reflecting a net initial yield of circa. 9.6%. Simultaneous with the purchase, NewRiver part let the property to Bank, the fashion retailer and part of the JD Sports Group. The value of this property was further enhanced post acquisition when the Company renewed H Samuel's short term lease, extending it to 10 years with no break clauses.

Newcastle is one of the UK's largest cities and the property is located within a prime position on Northumberland Street, Newcastle's premier retailing location. The property benefits from strong pedestrian footfall being immediately adjacent to Fenwick department store and close to major leading retailers such as Marks & Spencer and Primark.

The property has already provided strong annual income returns and now, through the successful negotiation and completion of the new institutional grade ground lease, it has delivered further capital value enhancement.

Development update at Skegness - The Hildreds Shopping Centre

NewRiver has acquired the long leasehold interest of its existing 39,500 sqft freehold asset attached to the Hildred's Shopping Centre in Skegness. The leasehold interest has been acquired from the Co-operative Group (CWS) Ltd for a total consideration of £2.9 million reflecting a net initial yield of 9.5%. The weighted average lease expiry profile is 7 years as the property is let to Home Bargains and the CWS has entered into a short term lease.

This acquisition will release an immediate uplift in value through the merger of the CWS's long leasehold interest with the Company's freehold interest. Furthermore this acquisition opens up a number of redevelopment opportunities to provide a larger anchor retailer to the shopping centre,

Property Director at NewRiver, Allan Lockhart said:

"We are delighted to have completed these transactions as not only do they generate significant profit and value creation, but in respect of the acquisition of the Co-Operative asset in Skegness, offer an exciting development opportunity. In particular the purchase, simultaneous re-let and subsequent sale of the asset at Great Yarmouth, alongside the property in Newcastle highlights the expertise and agility of our highly skilled management team."

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About NewRiver

NewRiver Retail Limited is a REIT status specialist real estate investor and asset manager focusing solely on the UK retailing sector with a particular focus on food and value retailing. The management team, led by David Lockhart, have more than 75 years' combined experience in UK commercial property markets. With assets under management at circa £275 million the Company's activities include active and entrepreneurial asset management and risk controlled development, utilising both its own balance sheet and co-investment joint venture structures. It is NewRiver's intention to become one of the leading sector-focused value-creating property investment businesses operating in the UK retail sector. The Company was founded in 2009 and its shares were admitted to London's AIM and Channel Islands Stock Exchange (CISX) in September of the same year. For more information on NewRiver, please visit www.nrr.co.uk.