NewRiver REIT PLC AM Agreement signed with Canterbury City Council (1840B)
September 19 2018 - 2:01AM
UK Regulatory
TIDMNRR
RNS Number : 1840B
NewRiver REIT PLC
19 September 2018
NewRiver REIT plc
("NewRiver" or the "Company")
Asset Management Agreement signed with Canterbury City
Council
NewRiver is pleased to announce that it has signed an Asset
Management Agreement ('AMA') with Canterbury City Council ('the
Council') for the asset management of Whitefriars Shopping
Centre.
This agreement is the first to be signed by NewRiver since it
announced in May 2018 its longer-term strategies to adapt to a
changing retail real estate market, which included using the
Company's market-leading asset management platform to manage
third-party assets. Under the terms of the AMA, NewRiver will
undertake full asset management responsibilities for the shopping
centre in exchange for a management fee calculated as a proportion
of net operational income received and a development fee calculated
on third-party-tendered development costs. The agreement will
initially be for two years, with the option of a roll on for a
further two years subject to the agreement of both parties.
NewRiver will not acquire an equity stake in the asset as part of
the agreement.
Whitefriars Shopping Centre is the dominant regional shopping
centre for East Kent and is located in the heart of Canterbury,
with a catchment of 270,000 people within a 30 minute drive and
annual footfall of 13 million. It has 75 units across 474,000 sq ft
and 530 car parking spaces, and is anchored by Fenwicks, Marks
& Spencer, Next and Primark. The shopping centre has been fully
owned by the Council since February 2018, when it purchased the
remaining 50% of the asset from its 50:50 joint venture with TH
Real Estate for GBP75 million, equating to a net initial yield of
6.5%. The joint venture was formed in 2016, when the Council paid
GBP79 million for its initial 50%, equating to a net initial yield
of 6.0%.
Allan Lockhart, Chief Executive, NewRiver said: "We are
delighted to have signed this Asset Management Agreement with
Canterbury City Council to bring our asset management expertise to
Whitefriars Shopping Centre. NewRiver's selection by the Council in
a competitive tender process demonstrates that our strong
relationships with retailers and track record of successful asset
management makes us the clear choice for third-party retail asset
owners. Against a growing trend of local authorities purchasing
shopping centre assets and taking control of their town centres,
NewRiver is ideally positioned to provide best-in-class asset
management expertise to them, delivering thriving assets for local
communities and sustainable, long-term revenue for our
shareholders."
Colin Carmichael, Chief Executive, Canterbury City Council said:
"Our purchase of Whitefriars Shopping Centre in February 2018 was a
once-in-a-generation opportunity to take control of one our city's
key sites and ensure it works for the benefit of the community. The
Council is very pleased to be partnering with one of the UK's
leading retail asset managers in NewRiver to realise this ambition.
Their passion and expertise give the Council the confidence that
Whitefriars will continue to go from strength to strength."
For further information
+44 (0)20 3328
NewRiver REIT plc 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Will Hobman (Head of Investor
Relations)
Finsbury +44 (0)20 7251 3801
Gordon Simpson
James Thompson
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing, developing and
recycling convenience-led, community-focused retail and leisure
assets throughout the UK.
Our GBP1.4 billion portfolio covers over 8 million sq ft and
comprises 34 community shopping centres, 21 conveniently located
retail parks and over 600 community pubs. Having hand-picked our
assets since NewRiver was founded in 2009, we have deliberately
focused on the fastest growing and most sustainable sub-sectors of
the UK retail market, with grocery, convenience stores, value
clothing, health & beauty and discounters forming the core of
our retail portfolio. This focus, combined with our affordable
rents and desirable locations, delivers sustainable and growing
returns for our shareholders, while our active approach to asset
management and in-built 1.9 million sq ft development pipeline
provide further opportunities to extract value from our
portfolio.
NewRiver has a Premium Listing on the Main Market of the London
Stock Exchange (ticker: NRR) and is a constituent of the FTSE 250
and EPRA indices. Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31
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END
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