Real estate investor swoops for retail park in £14.3m deal

Real estate investment company NewRiver has snapped up The Rishworth Centre and adjoining Railway Street Retail Park in Dewsbury for £14.3m.

NewRiver said the deal equates to a net initial yield of 7.9% and that the assets have an affordable average rent of £12.98 per sq ft and a weighted average unexpired lease term of 5.7 years.

The assets are located in the main retail warehouse concentration in Dewsbury, adjacent to a Sainsburys superstore and close to the local civic amenities and public transport links of the town centre.

The 68,400 sq ft Rishworth Centre comprises four retail units and 265 free car parking spaces, and the 23,700 sq ft Railway Street Retail Park comprises three retail units and 116 free car parking spaces. The occupier line-up includes Next, Pets At Home and Iceland.

Allan Lockhart, property director, said: “These acquisitions are in line with our strategy of acquiring fundamentally good quality assets with untapped enhancement opportunities which NewRiver is well placed to exploit as an active and specialist retail asset manager.

“We are confident of significantly improving the retailer profile and the sustainability and quality of underlying cash flows so that these assets will deliver attractive returns for our shareholders. Importantly we have retained our capital discipline on entry price, acquiring these assets at a blended yield of 9%.”