NewRiver completes £26.5m disposal of Scottish retail park
NewRiver has completed the disposal of the sale of Cuckoo Bridge Retail Park in Dumfries, Scotland to an institutional investor for £26.5m, reflecting a net initial yield of 6.9%.
The 130,000 sq ft retail park is fully let to retailers including KFC, Costa, B&M and Dunelm, and sits adjacent to a 24 hour Tesco Supermarket, with a Next collection pod.
Since its acquisition of the scheme in 2016, NewRiver has completed a number of asset management initiatives aimed at enhancing the tenant lineup, delivering improvements to net income, and strengthening the weighted average unexpired lease term.
These initiatives include a new lease on the former Homebase unit to Sainsbury’s, and the reconfiguration of two units into redesigned formats let to Food Warehouse and Next.
Following the sale, NewRiver said it has now completed £110m of disposals in the 2026 financial year, in-line with book value.
Allan Lockhart, chief executive of NewRiver, said: “This sale is a clear endorsement of our focused asset management strategy and the quality of execution delivered by our best-in-class retail park team. Through smart leasing, repositioning and disciplined investment, we have materially enhanced both the quality and durability of the income in this retail park.
“The sale price, reflecting a sub 7% yield, is an excellent outcome in southwest Scotland and demonstrates the success of our platform, the strength of our portfolio of assets, and the continued institutional demand for high quality retail parks. The transaction strengthens our balance sheet, enhances financial flexibility and positions us well as we continue to pursue disciplined growth and value creation for shareholders.”