NewRiver set to complete first pub development by December

NewRiver Retail has now submitted 48 planning applications to develop surplus land across its pub estate.

The UK REIT, which owns 360 pubs, said construction had started for the first of the company's convenience stores for the Co-operative Group with completion expected for December 2015 and handover planned for January 2016.

The group said there had been “significant progress” in its alternative use and extension strategy for its pub estate, with a further three planning applications submitted between 1 July and 30 September. In Q2 the company had nine new planning approvals, taking total planning approvals received to 22.

The company also said it had submitted nine applications for residential units during the quarter. Further applications are due to be submitted in Q3 to provide over 50 new dwellings, providing one and two bedroom apartments as well as detached and semi-detached houses.

Across its entire estate, NewRiver saw £222.3m of strategic acquisitions at a combined average yield of 9.6%. This included the £53.5m acquisition of 158 pubs from Punch Taverns at a net initial yield of 13.5%.

NewRiver said its retail occupancy rate had improved throughout the quarter to 96.3% (30 June 2015: 96.0%). The average retail rent for the portfolio, including recent acquisitions, remains at £12.35 per sq ft. 

It said good progress continued across its growing development pipeline, comprising over 1.25m sq ft of mixed-use space including retail, leisure, hotels and residential.