NewRiver REIT plc (LON:NRR) today announced the sale of a 70,000 sq ft Asda foodstore and petrol filling station at St Elli Shopping Centre, Llanelli to a private investor for £17.9 million, representing a net initial yield of 6.9% and a 1% discount to March 2019 valuation.
This transaction brings NewRiver’s total disposal proceeds since 1 April 2019 to £20.9 million, completed at a blended net initial yield of 6.6%, and marks significant early progress against NewRiver’s strategy to recycle capital from low yielding assets into higher yielding opportunities in joint ventures, in order to deliver Underlying FFO growth with a net neutral investment approach.
Allan Lockhart, Chief Executive commented: “We are delighted to have completed this transaction, demonstrating significant progress against our target to recycle 5% of our portfolio this financial year. Since 1 April 2019, we have sold, or are under offer to sell, £30.7 million of assets at a blended net initial yield of 5.8% and, in-line with our strategy, we have already recycled the proceeds of these disposals into our previously-announced acquisition of four retail parks, through a joint venture, for a net initial yield of 9.8%.”
