NewRiver has announced the acquisition of four freehold shopping centre assets from Zurich Assurance for around £68 mln (EUR 76 mln), reflecting a net initial yield of 8%. In a statement on Monday, the UK retail property company said it is partially funding the deal with the issue of nearly 17 million shares at 252 pence per share.

The assets offer 47,000 m2 of net lettable area and are leased to 122 tenants, providing good income diversification. Key retail tenants include The Co-operative, Poundland, TK Maxx and Boots. The portfolio has a low vacancy rate of 3.3%.

The purchase is conditional on NewRiver's shareholders approving the transaction as a reverse takeover as well as on completion of a new bank facility of up to 65% of property cost.

'The acquisition is another transformational transaction for NewRiver, in line with the company's investment strategy of targeting food anchored and value-led retail centres with stable income profiles and low occupational costs,' said Chief Executive David Lockhart.

The properties are Merlin's Walk in Carmarthen, The Piazza Shopping Centre in Paisley, The Hildreds Shopping Centre in Skegness as well as the Horsefair in Wisbech.

Following this acquisition, NewRiver will have acquired £220 mln of retail assets since its listing on London's AIM market less than two years ago.