One of the UK’s leading Real Estate Investment Trusts (REIT) NewRiver, has today announced that its joint venture with Bravo Strategies has led to the acquisition of Poole Retail Park for £44.7 million.
Located between the town centres of Poole and Bournemouth, the fully-let retail park comprises of 14 units offering 208,000 sq ft of retail space. Current tenants in the park include John Lewis at Home, DW Sports, Next Home, Boots and Home Bargains.
Following the purchase, NewRiver will hold a 10% interest in the retail park and will benefit from 10% of the net retail income (£0.4 million per annum) as well as becoming the asset manager.
Allan Lockhart, Chief Executive, commented on the purchase stating: “We are delighted to announce the acquisition of Poole Retail Park, demonstrating further progress with our strategies to deliver Underlying FFO growth, by recycling capital from lower-yielding assets into higher-yielding acquisitions, primarily through joint ventures. Acquiring through this JV ensures we can maximise our returns on capital deployed through the receipt of rental income, asset management fees, and promotes while maintaining a conservative balance sheet.
“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.”