NewRiver has completed the acquisition of two retail parks in West Yorkshire and Cardiff for £26.5m, representing an initial yield of 8.9% and a capital value of just £141 per sq ft.
NewRiver will act as asset manager on both parks and will look to add value through a variety of identified active asset management initiatives.
The Rishworth Centre and adjoining Railway Street Retail Park in Dewsbury were acquired from an institutional investor for £14.3m, which equates to a net initial yield of 7.9%. The parks have an average rent of £12.9 per sq ft and a weighted average unexpired lease term of 5.7 years.
The 68,400 sq ft Rishworth Centre comprises four retail units and 265 parking spaces, and the 23,700 sq ft Railway Street Retail Park comprises three retail units and 116 parking spaces. Occupiers include Next, Pets At Home and Iceland.
The 93,600 sq ft Valegate retail park on the edge of Cardiff city centre was acquired from an administrator for £12.2m, which equates to a net initial yield of 10.0%. The asset has average rents of £13.8 per sq ft and, with a weighted average unexpired lease term of 3.1 years. It comprises seven retail units and 325 parking spaces.
Allan Lockhart, property director said: “These acquisitions are in line with our strategy of acquiring fundamentally good quality assets with untapped enhancement opportunities. Importantly we have retained our capital discipline on entry price, acquiring these assets at a blended yield of 9%.”
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