UK REIT NewRiver Retail has bought three UK shopping centres for a total of £140 mln (€175 mln).
UK REIT NewRiver Retail has bought three UK shopping centres for a total of £140 mln (€175 mln).
The deal was funded through its joint venture with the Bravo II partnership, which is managed by US firm Pacific Investment Management (Pimco). NewRiver and Bravo II each took a 50% stake.
The portfolio covers 70,000 m2 of retail space and brings a net initial yield of just under 8%.
The assets include a site in Hastings on the south coast of England, another at Newtownabbey, north of Belfast, and the smallest, Newton Mearns, south west of Glasgow, which covers 18,500 m2.
There are 185 tenants across the sites, including Marks & Spencer, Asda, Primark and H&M, with an average vacancy rate of 3.5%.
The three sites are part of the Swallowtail portfolio of eight assets being sold by Abbey Group and the Foyleside Group.
Allan Lockhart, property director at NewRiver Retail, said, ‘The acquisition increases the growth asset base of NewRiver Retail to £730 mln and represents a significant milestone in the company's plan to reach £1 bn of assets under management.’