NewRiver REIT acquires Ellandi Management in strategic expansion move

NewRiver REIT has announced the acquisition of Ellandi Management Limited, a UK-based asset and development management firm specialising in retail and regeneration projects.

NewRiver REIT shares were down 3.5% at the time of writing.

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Ellandi brings to the table a portfolio of 16 shopping centre asset management mandates, covering over 6.3 million square feet, with 10 different partners.

In the financial year ending 30 April 2024, Ellandi reported fee income of £5.7 million and EBITDA of £1.1 million.

NewRiver has agreed to an initial cash payment of £5 million for the acquisition, with potential additional payments of up to £4 million tied to EBITDA performance over a three-year period. Given the market reaction, investors aren’t overly enthralled with the terms.

NewRiver’s combined Capital Partnership business will now manage assets worth approximately £1.5 billion, encompassing 21 shopping centres and 18 retail parks across 13 partners.

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When including NewRiver’s wholly-owned retail assets, the total Assets Under Management (AUM) rises to about £2.0 billion, spanning 44 shopping centres and 29 retail parks. This expanded portfolio is expected to generate an existing fee income stream of £8.2 million.

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