NewRiver REIT plc announced the formation of a new retail park Capital Partnership with affiliates of Soilbuild Group Holdings Ltd  and United Engineers Limited, two long-established and leading Singapore-based real estate investors.

The Capital Partnership announced it has completed its first acquisition, The Springs retail park in Leeds, for £73.5 million from Legal & General.

NewRiver has been appointed to provide acquisition, financing and asset management services to the Capital Partnership, generating recurring fee income.  

The Springs is a 275,000 sq ft retail and leisure park located at the intersection of junction 46 of the M1 and the Leeds Ring Road (ELOR) with over 900 car parking spaces and occupiers including M&S, Next, TK Maxx, Boots, Mango, The Range, Nando’s and Odeon.

NewRiver REIT CEO Allan Lockhart said: “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.”