UK REIT forms partnership with Pimco to buy four retail parks for £60.5m
NewRiver has agreed a new 50:50 joint venture with a fund managed by Pacific Investment Management Company to buy and manage UK retail parks. To kickstart the venture, it has bought a portfolio of four retail parks from Zurich Assurance for £60.5m, reflecting a net initial yield of 9.8%.
The portfolio comprises four retail park parks: Kittybrewster retail park, Aberdeen; Telford retail park, Inverness; units in Kingsway East retail park, Dundee and Wakes retail park on the Isle of Wight. The retail parks have an affordable average rent of £14.77 per sq ft, an affordable rent to sales ratio of 6.5% and a WAULT of 6.3 years, and are let to a high quality and well-diversified line-up of occupiers that complements NewRiver’s existing portfolio.
Chief Executive Allan Lockhart said:: “We are delighted to be re-establishing a successful partnership that dates back to 2012, and has a track record of delivering growing returns to our shareholders. Recycling our capital from disposals into joint ventures enables us to secure a superior return on our capital and provides us with significant additional firepower to take advantage of the current dislocation in the retail real estate market.”