NewRiver and Singapore investors snap up £73.5m Leeds retail park
The Springs at Thorpe Park has been acquired from Legal & General as part of a new investment partnership.
The deal sees NewRiver form a new retail park-focused capital partnership with affiliates of Soilbuild Group Holdings and United Engineers, acquiring the 275,000 sq ft scheme with NewRiver holding a 25% stake in the partnership.
NewRiver’s stake represents a net equity investment of £9.3m following completion of a loan facility.
The Springs was developed in 2018 by L&G in partnership with Scarborough International Properties as part of the wider expansion of Scarborough Group’s Thorpe Park Leeds scheme.
Located at the junction of the M1 and the East Leeds Ring Road, The Springs has more than 900 car parking spaces and occupiers include M&S, Next, TK Maxx, Boots, Mango, The Range, Nando’s, and Odeon.
The park is currently 96% occupied, with an average rent of £19.20 per sq ft and a weighted average lease expiry of 7.5 years.
NewRiver said the scheme is expected to be fully let within six months and offers opportunities for asset management and rental growth.
The REIT will provide acquisition, financing, and asset management services to the partnership, generating recurring fee income alongside its direct investment return.
The partners said they intend to grow the partnership over the medium term, subject to market conditions and suitable investment opportunities.
Allan Lockhart, chief executive, commented: “This capital partnership is a strong endorsement of the retail sector and of NewRiver’s own retail expertise and operating platform. Retail parks are one of our highest conviction investment sectors, and this Capital Partnership creates a scalable platform for long-term growth.
“By combining NewRiver’s operating expertise with long-term international capital, we can expand our presence in the sector in a capital-efficient way, generating recurring fee income alongside attractive investment returns.
“The Springs is an exceptional first acquisition for the Capital Partnership. It is a high-quality asset with attractive fundamentals, strong occupier performance and clear opportunities to deliver further income and value growth.
“This transaction also establishes a long-term relationship with partners who share our conviction in the retail park sector. Together, we have the ambition to build a significant portfolio over time while maintaining our disciplined approach to capital allocation.”
Lim Han Qin, director of Soilbuild Group Holdings, commented: “The launch of this partnership marks a significant milestone in the growth of our UK retail portfolio, a sector which aligns firmly with our broader real estate strategy, to undertake scalable investments into high-quality assets with growing cash flows.
“This partnership is complementary to our Group’s existing PBSA business in UK and demonstrates our commitment and focus in expanding and growing our UK business.”
Zhong Ming, executive director, United Engineers, commented: “We are excited to be partnering with NewRiver, which brings a leading operating platform and a long-standing track record of successfully investing in the UK retail market.
“We look forward to working closely with the NewRiver team to execute our strategy and grow the partnership over the coming years.”
