NewRiver makes £62.6m final disposals of Napier JV
NewRiver and a Luxembourgish investment company (BRAVO) have completed the disposals of the remaining retail parks in the Napier Joint Venture to RI UK 1 for a total consideration of £62.6m.
Kittybrewster Retail Park in Aberdeen and Glendoe & Telford Retail Park in Inverness were the schemes involved in the disposal, and bring the total sale receipts from the JV to £76m.
The proceeds from the sales of the total portfolio are 26% higher than the purchase price of £60.5m when NewRiver and partner BRAVO acquired the properties in June 2019.
The three assets which have now been disposed of generated a net rental income of £5.7m during the 2023 financial year and had a gross asset value of £64.4m as of March 31 2023, NewRiver said.
The real estate investment trust will use the sale proceeds to reduce its net debt by £31.8m to £169.5m.
Earlier disposals in the portfolio consisted of the sales of Kingsway East Retail Park in Dundee and Wakes Retail Park in Newport, the Isle of Wight.
Following the final disposals of the Napier JV, NewRiver and BRAVO continue to own two assets as part of a separate venture.
Allan Lockhart, chief executive of NewRiver, said: “The Napier Joint Venture is a great example of why we like retail parks and working in capital partnerships. Over our four years of ownership and management, we have been able to crystallise compelling returns for ourselves and our partner by utilising our specialist retail platform at each stage of the process, all the way from disciplined stock selection to successful delivery of asset management plans in order to secure a successful exit.”