Newriver’s Ellandi acquisition gives boost to results as firm eyes up Capital & Regional bid
Newriver, the London-listed retail real estate investment trust (REIT), managed to shrug off wider issues in the commercial property market during its first quarter thanks to a recent deal.
The company, which counts firms such as Poundland, Primark and Superdrug, as tenants, maintained occupancy at 97.3 per cent – with a consistent leasing retention rate of 95 per cent – and completed 147,300 sq ft of leasing throughout the three months to June 30.
Newriver’s results were aided by the addition of Ellandi Management, a retail and town centre regeneration business. In July, Newriver paid £5m for the business, with an additional £4m subject to performance.
The deal helped Newriver expand its capital partnerships business, a key strategic priority for the group.
The acquisition added a portfolio of 16 shopping centre asset management mandates. Newriver’s partnerships business now manages 21 shopping centres and 18 retail parks, with 13 different partners.
On May 23, the Newriver’s board confirmed it had made a preliminary proposal to Capital & Regional’s majority shareholder. Having been granted an extension over its bid, the firm now has until August 15 to announce a firm intention to make an offer.
Allan Lockhart, chief executive, commented: “The strong operational performance delivered in our last financial year continued into the first quarter of fiscal 2025… Our portfolio continues to perform well underpinned by good occupational demand and the quality of our asset management.”
Lockhart added: “The acquisition of Ellandi, a high-quality asset and development management business, in early July accelerates the growth in our Capital Partnership business, where we have now established a meaningful platform.
“We now own or manage £2bn of retail real estate assets, collecting nearly £190m of annual rent from over 3,000 tenants.”
“Finally, our balance sheet is in a good position with cash up to £134 million which provides us significant deployment optionality,” the CEO summarised.