Trio of property deals see retail sites switch hands

NewRiver Retail exchanged contracts on a £69.1m the Ramsay Retail portfolio of 13 retail warehouses, including three Yorkshire retail parks.

The real estate investment trust (REIT) said the acquisition of the properties will be paid for by the recent placing of 50 million shares.

The fundraising is set to raise a total of around £150m for NewRiver.

Of the 13 properties, there are nine “value-led retail parks” comprising 462,916 sq ft. A further four development sites with approved planning consents and pre-let interest will add a further 300,289 sq. ft, NewRiver Retail said.

E5 Retail Park in Bradford, Kirkstall Retail Park in Leeds and Victoria Road Retail Park in Beverley are included in the deal, as well as sites in Liverpool, Kendal, Glasgow and Chester.

There are 36 current tenants include, including TK Maxx, Argos, Poundstretcher, B&M, Matalan and Boots, with letable space representing an eight per cent initial net yield.

David Lockhart, chief executive at NewRiver Retail, said the result of the trust’s latest round of fundraising reflects support for the firm’s growth strategy from new and existing shareholders.

He said: “This attractive yielding portfolio benefits from a strong retailing covenant leading to a secure and sustainable income stream and presents an immediate opportunity for NewRiver to pursue a range of value-enhancing asset management and risk controlled development initiatives.

“We are confident that this acquisition will add significant long term value for our shareholders.”

Commercial property investment and development company RO Real Estate confirmed it had sold a five properties for £5.46m, including a retail and office building in Huddersfield.

The 37,340 sq ft West Yorkshire site was sold to MCR Property Group for £2.275m, the highest-value transaction in the portfolio.

Four other sites in Sunderland, Carlisle, Jarrow and Isle of Wight, comprising 54,250 sq ft were also sold.

RO Real Estate said the sales were in line with its strategy of disposing of non-core assets to reinvent in core business.

Richard Bourne, head of RO Real Estate, said: “These disposals follow the completion of our asset management programmes for each property, which included significant refurbishment/extension works and new lettings.

“We now have around £15-20 million to invest and will continue to invest in assets in strong micro-locations, across the south of England, which we believe will deliver us strong long-term income.”

In Sheffield, Columbia Threadneeedle Investments has bought the freehold interest in Hillsborough Trade Point for £4.15m.

The 47,350 sq. ft. multi-let trade counter business park was sold by Hillsborough Regeneration Company who were advised by Sheffield-based property consultancy Commercial Property partners (CPP).

The site, which is located opposite Sheffield Wednesday’s football ground, includes tenants such as Topps Tiles, Screwfix, YESSS Electrical, Dulux and Maplin.

Roger Haworth, Partner of CPP, said the deal is significant for the city.

He said: “[It] graphically illustrates the region’s popularity underlining that well-located, quality assets, with proven occupiers, will always prove attractive.”