Retail and office complex sold for £9.6m

PROPERTY investment trust NewRiver Retail has sold a High Street retail and office complex in Shropshire for £9.6m.

Princess House, located in Shrewsbury’s historic square, has been bought by the Rockspring Property Investment Managers, reflecting a net initial yield of 7.2%.

The property comprises 50,800 sq ft and current tenants include Starbucks and HSBC.

A statement from NewRiver Retail said: “Given that the apportioned purchase price was £8m plus costs, the sale price represents a significant return on the original investment.”

The company also announced today that it had completed the sale of the heritable interest of Unit 3, at 50-60 Union Street in Glasgow, to the Nobel Group for a consideration of £1.3m.

Both disposals were assets purchased in March last year as part of the UBS Triton Property Fund acquisition, in collaboration with NewRiver’s JV partner Morgan Stanley Real Estate Investing.

Property director Allan Lockhart said: “These transactions demonstrate the capabilities of NewRiver to acquire real estate, enhance value and realise capital through a sale in a relatively short period.

“We are very pleased with the performance of these assets and we look forward to recycling the surplus generated into new and exciting projects.”