Cuckoo Bridge Gets New Owner

NewRiver Retail Limited (AIM: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, announces that it has completed the acquisition ('The Acquisition') of Cuckoo Bridge Retail Park, Dumfries off-market from a large listed property company for a total consideration of £20.2 million. The acquisition equates to a net initial yield of 7.05%, an equivalent yield of 7.87% and a reversionary yield of 7.93%, with net rental income at purchase of £1.5 million per annum.

Cuckoo Bridge Retail Park is the dominant retail park in Dumfries, prominently located in close proximity to the A75. The asset has a strong catchment area, ideally located within a 30-minute drive time of Dumfries and the surrounding areas to the north and west, which has a population of nearly 90,000. 

The retail park is 100% occupied and comprises 130,000 sq ft of income generating space across seven retail units with a weighted average lease expiry of 8.32 years and 550 car park spaces.

The asset benefits from prime positioning, adjacent to a 24 hour Tesco Supermarket which provides the main food offer for the town. Anchored by Homebase, the retail park also offers a mix of quality retailers including: Dunelm, Poundstretcher, Laura Ashley, B&M, KFC and Costa Coffee.

This strategic acquisition presents a range of value-enhancing asset management and development opportunities which will drive income and capital growth. The Acquisition has been funded using existing cash resources. Retail warehouses account for 12% of NewRiver's £1.24 billion portfolio.

Allan Lockhart, NewRiver Property Director, commented:

"We are delighted to announce the acquisition of Cuckoo Bridge Retail Park, extending our growing and sustainable income stream, underpinned by long-term covenants. The Acquisition demonstrates our ability to grow the portfolio through our carefully selected acquisitions in line with our focused business model.

This favourably located asset is well established in the local community, providing every day necessities for the local population. Cuckoo Bridge presents excellent opportunities to generate attractive cash on equity returns by driving income and capital growth through the Company's active asset management and risk-controlled development."