NewRiver REIT plc (LON: NRR) has announced that its joint venture with BRAVO Strategies III LLC has completed the acquisition of Poole Retail Park in Dorset from LS Poole Retail Limited, for total consideration of £44.7 million, reflecting a net initial yield of 8.0%. This follows the announcement on 12 September 2019 that the JV had exchanged contracts for the acquisition.
NewRiver REIT will hold a 10% interest in the asset (NRR share: £4.5 million) and will benefit from 10% of the net rental income (NRR share: £0.4 million per annum). NewRiver will be appointed as asset manager, in return for a management fee calculated with reference to the gross rental income of the asset, and will also receive a promote based on financial performance.
The gross asset value subject to the transaction is £44.7 million and NewRiver’s share of the transaction will be satisfied from existing resources and available credit facilities.
Including this acquisition, the JV established in May 2019 has acquired £105.1 million of assets (NRR share: £34.7 million), reflecting a net initial yield of 9.0%.
