NewRiver REIT has sold Mount Street Retail Park in Wrexham and Saltney Retail Park in Chester to M7 Real Estate.
The parks were sold for £12.3m, reflecting a blended net initial yield of 7.6%. NewRiver said the price tag was ahead of March and September 2018 valuations.
Mount Street Retail Park comprises a 55,300 sq ft retail park anchored by Matalan with 213 car parking spaces.
Since its acquisition by NewRiver in June 2014, the asset has generated an unlevered IRR of 11.1%.
Meanwhile, Saltney Retail Park (pictured) comprises a 48,200 sq ft retail warehouse let to GO Outdoors with 380 car parking spaces.
Since its acquisition by NewRiver in July 2015, the asset has generated an unlevered IRR of 22.2%.
Mount Street Retail Park is the final asset to be disposed of from the REIT’s Linear portfolio – four retail park assets acquired by NewRiver in 2014 for £17.3m.
The other assets in the portfolio were: a Halfords store in Paisley, sold in 2015 for £1.8m; a Poundstretcher store in Wymondham, Norfolk, sold in 2017 for £4.3m; and Clough Road Retail Park in Hull, which was sold in 2014 for £11.2m.
NewRiver director Charles Spooner said: “This portfolio, which was our first investment in retail parks, has delivered an attractive return over its period of ownership, and we have profitably recycled these assets over the past few years.
“These latest sales, ahead of March and September 2018 valuations, provide further evidence of the liquid market for conveniently located retail assets with a small lot size.”
In total, the Linear portfolio generated an unlevered IRR of 14% over its period of ownership.
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