NewRiver Retail, a UK REIT specialising in retail property investment, has completed the acquisition of the Hillstreet shopping centre in Middlesbrough.
NewRiver Retail, a UK REIT specialising in retail property investment, has completed the acquisition of the Hillstreet shopping centre in Middlesbrough.
The £50 mln (€58 mln) deal - NewRiver Retail's largest to date - reflects a net initial yield of 9.6%.
NewRiver partnered with a subsidiary of the Pimco Bravo Fund in a 50:50 joint venture to acquire the covered, single-level shopping complex comprising 21,000 m2 of retail accommodation and a 753 space car park.
The acquisition supports the company's strategy to deploy the proceeds of its recently oversubscribed £67 mln equity fundraise, NewRiver said.
The centre offers a weighted average lease expiry of nine years and is anchored by Primark, Debenhams and Marks & Spencer. Occupancy stands at 98%.
'The acquisition provides significant opportunity to unlock additional value in the centre underpinned by a robust cashflow,' said NewRiver CEO David Lockhart.
