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NewRiver REIT has finalised the sale of Cuckoo Bridge Retail Park in Dumfries to an unnamed institutional investor for £26.5m, reflecting a net initial yield of 6.9%.
Cuckoo Bridge Retail Park, Dumfries
NewRiver acquired the site in 2016 and has since significantly enhanced the tenant line‑up. The former Homebase unit, left vacant after the retailer collapsed into administration, was leased to Sainsbury’s, delivering a substantial uplift in rent and securing a new 15-year CPI-linked lease.
NewRiver also recently reconfigured two units into redesigned formats let to Food Warehouse and Next.
Allan Lockhart, chief executive of NewRiver, said: “This sale is a clear endorsement of our focused asset management strategy and the quality of execution delivered by our best-in-class retail park team. Through smart leasing, repositioning and disciplined investment, we have materially enhanced both the quality and durability of the income in this retail park.
“The sale price, reflecting a sub-7% yield, is an excellent outcome in south-west Scotland and demonstrates the success of our platform, the strength of our portfolio of assets and the continued institutional demand for high-quality retail parks. The transaction strengthens our balance sheet, enhances financial flexibility and positions us well as we continue to pursue disciplined growth and value creation for shareholders.”
The REIT has now completed £110m of disposals this financial year.
The proceeds from the sale increase NewRiver’s cash holdings to in excess of £100m and reduce group LTV to close to the company’s medium term guidance level of <40%.
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