Disposal of Abbey Centre for £58.8m

NewRiver announces that it has completed on the disposal of Abbey Centre, Newtownabbey in Northern Ireland to The Herbert Group of Companies in an off market transaction for £58.8m, reflecting a net initial yield of c.9%. The sale price is in-line with both the March 2025 and the March 2024 book values.

The 320,000 sq ft shopping centre, located six miles north of Belfast City Centre, is home to over 70 shops with a strong convenience offer, together with a popular food court and a doctors surgery. Having owned the asset since 2014, NewRiver has completed a number of successful initiatives, improving occupancy, which currently sits at 99%, tenant mix and rental tone with highlights including:

• The creation of a new 44,000 sq ft flagship store for Next
• Realised a capital receipt as part of Dunnes refurbishment and 15,000 sq ft extension
• Re-anchored the scheme through the delivery of an upsized Primark into a former BHS unit
• Upsized Danske Bank to a new flagship branch and created a new external unit for Greggs
• Upsized River Island, Poundland, The Works and Superdrug
• Completed a refurbishment programme including the entrance, car park and a revitalised food court

NewRiver expects to reinvest the capital into opportunities with superior income and capital growth potential. In the meantime, the sales proceeds will be used to reduce NewRiver's LTV as at 31 March 2025 by c.4% bringing it well within LTV guidance of <40%.

Allan Lockhart, Chief Executive commented: "This off market sale of Newtownabbey is a great example of our specialist platform capabilities, from our disciplined stock selection to transforming the asset into one of the most successful shopping centres in the region and then securing a successful exit at book value. Capital recycling is one of our growth drivers and we believe the success of our asset management initiatives has extracted the maximum value from this asset. We remain on track with other disposals and so whilst this sale brings our LTV to below our guidance, in due course we expect to recycle our capital into opportunities with superior income and capital growth potential. This sale also demonstrates the continuing improvement in investor demand for UK shopping centres."