NewRiver Secures New Sainsbury's Store in Dumfries Retail Park
Why we think this is very good
The RNS announcement from NewRiver REIT highlights several positive developments for the company. The signing of a new 15-year lease with Sainsbury's for a 48,100 sq ft unit in Cuckoo Bridge Retail Park in Dumfries demonstrates strong demand for NewRiver's retail park portfolio. The new lease terms are 60% above both the previous rent and the valuer's ERV, indicating the company's ability to secure favorable rental agreements. Furthermore, the new Sainsbury's store will be the first in the Dumfries area, creating new jobs and providing a new grocery option for the local community. Overall, this news showcases the strength of NewRiver's retail portfolio and the company's success in attracting high-quality tenants, which should be viewed positively by investors.
Key Points
- New 15-year lease to Sainsbury's for a 48,100 sq ft unit in Cuckoo Bridge Retail Park in Dumfries
- New Sainsbury's store reactivates former Homebase unit and demonstrates strong demand for NewRiver's retail park portfolio
- Improved terms at a rent 60% above both previous rent and valuer's ERV
- Creates the first Sainsbury's in Dumfries and new jobs
- Demonstrates the strength of the UK retail market and the important role of the physical store network for omni-channel operators
Summary
NewRiver REIT plc has announced a new 15-year lease with Sainsbury's for a 48,100 sq ft unit in Cuckoo Bridge Retail Park in Dumfries. The new Sainsbury's store will be the first in the Dumfries area and is expected to create new jobs. The lease terms are 60% above both the previous rent and the valuer's ERV, indicating strong demand for NewRiver's retail park portfolio. This news showcases the strength of NewRiver's retail portfolio and the company's success in attracting high-quality tenants.