NewRiver REIT snaps up smaller peer Ellandi Management

NewRiver REIT, the retail-focused real estate investor, has announced it is spending up to £9m to acquire the assets of Ellandi Management, which manages shopping centres and regeneration projects.

The initial consideration would be £5m in cash, plus a further £4m subject to profit performance over a three-year earn-out period.

NewRiver REIT said the deal adds "scale and diversification", and supports the company's strategy to expand its Capital Partnerships business and grow fee income.

The combined group will own 21 shopping centre and 18 retail parks, in addition to Ellandi's current regeneration projects in Blackpool town centre and the Strand Shopping Centre in Bootle.

As part of the acquisition, co-founders and owners Morgan Garfield and Mark Robinson will join NewRiver REIT as head of Capital Partnerships and head of regeneration, respectively.

"We have watched the impressive growth of Ellandi over the last 16 years, despite limited capital resources, which has been in no small part due to the entrepreneurial energy and expertise of Morgan, Mark and their team," said NewRiver REIT's chief executive Allan Lockhart.

"We believe there will be considerable opportunities in the retail real estate market to accelerate the growth of our business from this point."

NewRiver REIT's shares were down 4.5% at 75.43p by 1601 BST on Thursday.