New River Completes Disposal Of 90% Interest In Retail Park In Lisburn

NewRiver has completed the disposal of 90% of its interest in Sprucefield Retail Park, Lisburn, to its joint venture partner BRAVO Strategies for £34.7 million.

The transaction increases the company's total completed disposals so far in FY21 to £50.4 million. On a pro-forma basis, the disposals improve the company's 31 March 2020 LTV of 47.1% by 210 bps, before factoring in valuation and cash movements since year end.

NewRiver will retain a 10% interest in the asset and will benefit from 10% of the net rental income. NewRiver has also been appointed as asset manager, in return for a management fee calculated by reference to the gross rental income of the asset, and will receive a promote based on financial performance.


The transaction brings NewRiver's total disposals completed, exchanged or currently under offer to £65.7 million, which in aggregate represent a 3% discount to March 2020 valuations.

NewRiver's current joint venture relationship with BRAVO was formed in May 2019, with the aim of acquiring and managing a portfolio of retail parks in the UK.

The transaction was supported by £20 million of debt financing provided by AIB, representing a new key banking relationship for NewRiver.

Allan Lockhart, Chief Executive commented: "We are pleased to complete this sale, further expanding and strengthening our joint venture relationship with BRAVO as part of NewRiver's capital partnerships strategy. One of our key priorities for this financial year is to dispose of £80 million to £100 million of assets, in order to improve our LTV in-line with Company guidance. This sale means we are ahead of target at the end of the first half, and we continue to add to our disposal pipeline."