Member Article

NewRiver Retail sees profits soar after a year of acquisitions

NewRiver Retail, a property investment company specialising in retail, has reported a pre-tax profit of £39.5m, for the year ending 31 March 2015, compared to £23.1m on the previous year.

The property group, which has the majority of its portfolio in the South East, has made a total of £330m acquisitions in the last year, including the £140 million acquisition of the Swallowtail Portfolio - its largest to date.

The portfolio comprises several major retail properties across the country, including Priory Meadow, Hastings, East Sussex, which has limited retailing competition from other towns/cities and provides the dominant retailing offer within Hastings.

Moreover, in November 2014, the NewRiver Retail acquired the Montague shopping centre in Worthing from a UK institution for £5.8m, reflecting a net initial yield of 7.7%.

Shopping centres represented 84% of the company’s total acquisitions completed during the period at a weighted net initial yield of 7.93%. This level compares ‘very favourably’ with the weighted net initial yield for transactions within the shopping centre market during the last 12 months at 6.14%.

David Lockhart, chief executive at NewRiver Retail commented: “The year under review has been the most successful for NewRiver since its inception five years ago. The company has delivered on a wide range of key metrics and is now recognised as one of the leading value-creating property companies in the UK.

“Our proven active asset management and risk controlled development skills are making a real difference to town centres and in doing so are creating significant value for the company and its shareholders. We have created a strong platform and a firm foundation for further growth. We enter the next phase of our journey with confidence and optimism.”

This was posted in Bdaily's Members' News section by Ellen Forster .