NewRiver buys Ramsay Retail for £69.1m

NewRiver Retail has acquired Ramsay Retail Warehouse for £69.1m.

The retail property investment and active asset management group said the purchase equates to a net initial yield of 8% on the income producing assets.

Ramsay Retail will be acquired from a foodstore operator after a raising of 50m new shares which will generate £150m.

It comprises of 13 assets, including nine retail parks and four development sites. Its current portfolio includes TK Maxx, Argos and Boots.

Chief executive David Lockhart said: "This attractive yielding portfolio benefits from a strong retailing covenant leading to a secure and sustainable income stream and presents an immediate opportunity for NewRiver to pursue a range of value-enhancing asset management and risk controlled development initiatives.

"We are confident that this acquisition will add significant long term value for our shareholders."

Shares rose 0.76% to 320.92p on Monday at 1131 BST.