UK REIT NewRiver Retail and global investment manager Pimco have teamed up to acquire a portfolio of five shopping centres in the UK from Zurich Assurance. The investment volume for the secondary market assets comes to £85 mln (EUR 104 mln), reflecting a net initial yield of 9.7%.
UK REIT NewRiver Retail and global investment manager Pimco have teamed up to acquire a portfolio of five shopping centres in the UK from Zurich Assurance. The investment volume for the secondary market assets comes to £85 mln (EUR 104 mln), reflecting a net initial yield of 9.7%.
The transaction is Pimco's first in Europe. The US-based company is taking part in the joint venture deal through a subsidiary of its EUR 1.7 bn Bravo fund.
The pair have formed a joint venture named NewRiver Retail Property Unit Trust, in which NewRiver holds a 10% interest and Pimco the remaining 90%.
NewRiver will own 10% of the first acquisition and up to 50% of any future acquisitions. The company will also receive asset management fees.
The portfolio of five UK shopping centres comprises three freehold and two long-leasehold shopping centres in Leamington Spa, Cowley, Kilmarnock, Bridlington and Hull. The total lettable area is about 92,000 m2.
Santander and HSBC provided senior debt for the transaction.
