NewRiver REIT plc completed the £26.5 million purchase of two U.K. retail parks, generating an 8.9% initial yield.
The deal, reflecting a per-square-foot capital value of £141, included the 68,400-square-foot Rishworth Centre and the adjoining 23,700-square-foot Railway Street Retail Park in Dewsbury. NewRiver paid an institutional investor £14.3 million for the assets, bringing their net initial yield to 7.9%.
Rishworth Centre features four retail units and 265 free car parking spaces, whereas Railway Street comprises three retail units and 116 free car parking spaces. Included in the tenants are Next, Pets At Home and Iceland, which offer average rent of £12.98 per square foot for a weighted average unexpired lease term of 5.7 years.
Additionally, the real estate investment trust acquired the Valegate Retail Park in Cardiff from an administrator for £12.2 million, marking a net initial yield of 10.0%. The retail park houses seven units and 325 free car parking spaces on 93,600 square feet. TK Maxx anchors the property that generates £13.82-per-square-foot average rent for a 3.1-year weighted average unexpired lease term.