Completion of formation of a new Joint Venture with BRAVO and acquisition
NewRiver is pleased to announce that it has signed the shareholder agreement to complete the formation of a new joint venture (the “JV”) with BRAVO Strategies III LLC (“BRAVO”). This follows the announcement on 23 May 2019 that terms had been agreed with BRAVO, in principle, to form a new JV. It is intended that the JV will acquire and manage a portfolio of retail parks in the UK and, under the terms of the shareholder agreement, NewRiver has been appointed as asset manager to the JV.
NewRiver announced on 23 May 2019 that it had exchanged contracts on the acquisition of a portfolio of four retail parks for total consideration of £60.5 million, reflecting a net initial yield of 9.8%, from Zurich Assurance Ltd. This acquisition has now been completed by the JV, and NewRiver's share of the transaction was satisfied from existing resources and available credit facilities. Initially, NewRiver will hold a 50% interest in the gross assets of the JV (NRR share: £30.2 million) and NewRiver will benefit from 50% of its net rental income (NRR share: £3.1 million per annum).