NewRiver REIT has acquired a £73.5M Leeds retail park in a joint venture with two Singapore-based property investors, establishing a new partnership designed to expand its UK retail park estate.

The Springs Retail Park, purchased from Legal & General, is the first acquisition for the capital partnership between NewRiver, Soilbuild Group Holdings and United Engineers, and the deal reflects a topped-up net initial yield of 7% and an equivalent yield of 7.9%.

NewRiver holds a 25% stake in the partnership, requiring a net equity investment of £9.3M following completion of a loan facility. Soilbuild and United Engineers will jointly hold the remaining 75%.

The partnership aims to build a larger portfolio over the medium term, subject to market conditions and suitable investment opportunities. NewRiver will provide acquisition, financing and asset management services.

“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,” NewRiver Chief Executive Allan Lockhart said in a statement.

The Springs comprises approximately 275K SF of retail and leisure space at the junction of the M1 and Leeds Outer Ring Road, with tenants including M&S, Next, TK Maxx, Boots, Mango, The Range, Nando’s and an Odeon cinema.

Developed in 2018, the park is 96% occupied, with an average rent of £19.20 per SF and a weighted average unexpired lease term of 7.5 years. NewRiver said the occupational cost ratio of 8.6% supports scope for rental growth, with the asset expected to be fully let within six months.

Soilbuild Director Lim Han Qin said the partnership marked a milestone in expanding the Singapore-based group's UK retail portfolio, complementing its existing purpose-built student accommodation business.

The transaction comes as investors continue to target retail parks. Colliers reported that UK retail investment volumes reached £2.3B in the year to June 2026, down 45% against the equivalent period in 2025, reflecting a more selective investment market. However, retail parks continued to attract buyers, with Realty Income acquiring eight parks from Tristan Capital Partners for approximately £260M at a 7.7% net initial yield.

NewRiver has been expanding its asset management business since completing its acquisition of Capital & Regional in December 2024. The group has a portfolio valued at approximately £800M and manages a further £1.3B of assets on behalf of capital partners, taking total assets under management to £2.1B.

The latest acquisition leaves NewRiver with a pro forma loan-to-value ratio of 44%, within its 50% policy limit. The company said it intends to dispose of selected lower-growth assets during its current financial year to move back towards its 40% LTV guidance.