NewRiver to manage JV-purchased Poole Retail Park

NewRiver announced on Thursday that its joint venture with BRAVO Strategies III has completed the acquisition of Poole Retail Park in Dorset, from LS Poole Retail, for a total consideration of £44.7m, reflecting a net initial yield of 8.0%.

The FTSE 250 real estate investment trust had announced the exchange of contracts for the acquisition on 12 September.

It said it would hold a 10% interest in the asset, or £4.5m, and would benefit from 10% of the net rental income, or £0.4m per annum.

NewRiver would be appointed as asset manager, in return for a management fee calculated with reference to the gross rental income of the asset, and would also receive a promote based on financial performance.

“The gross asset value subject to the transaction is £44.7m and NewRiver's share of the transaction will be satisfied from existing resources and available credit facilities,” the board said in its statement.

“Including this acquisition, the joint venture established in May 2019 has acquired £105.1m of assets, reflecting a net initial yield of 9.0%.”