Joint venture buys shopping centre for £49m as the first step in building retail portfolio

NewRiver Retail investment, a joint venture between NewRiver and Morgan Stanley Real Estate, invested in nine retail assets totalling more than 400,000 sq ft, including The Packhorse Shopping Centre in Huddersfield.

The joint venture, which is targeting UK retail property assets, is a Guernsey-registered limited partnership and will have an acquisition capacity in excess of 250m.

The Leeds office of Eversheds advised on the venture's first acquisition. The joint venture structuring was dealt with by a team in London.

Stephen Felstead, head of real estate investment, said: "This transaction is further evidence of the investment opportunities that are re-emerging in the current market for sector specialists to drive value though attractive initial yields and active and entrepreneurial asset management."

David Lockhart, chief executive of NewRiver, added: "I was impressed by the professionalism and commitment of the Eversheds team.

"They were willing to do what it took to meet timing deadlines and their constructive and friendly approach throughout helped us deliver these key strategic deals for us."

The Pack Horse Centre is a covered pedestrianised shopping area which was built over the former cobblestoned street known as the Pack Horse Walk, named after the pack horses which ferried merchandise over the Pennines.