NewRiver REIT has acquired Landsec’s Poole Retail Park in Dorset through its Bravo joint venture.
It has exchanged contracts to acquire the retail park for £44.7m, reflecting a net initial yield of 8%.
In May, EG revealed that Landsec had appointed Morgan Williams to sell the retail park for circa £48m.
NewRiver will hold a 10% interest in the asset and will take 10% of the net rental income. It will also be appointed asset manager.
Poole Retail Park, located between Poole and Bournemouth, comprises 14 units totalling 208,000 sq ft. Tenants include John Lewis at Home, DW Sports, Next Home, Homesense, Boots and Home Bargains. It has a WALT of 6.7 years at an average rent of £18.24 per sq ft.
Allan Lockhart, chief executive at NewRiver REIT, said: “Poole Retail Park is a high-performing asset that benefits from a very convenient location and a strong and diverse tenant line-up, and presents a number of exciting opportunities to extract further value and higher rental income through active asset management and risk-controlled development.”
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