London-listed Newriver Reit has acquired the retail and town centre investment manager Ellandi in a move which will bring the landlord’s assets under management to £2bn.
Newriver, whose tenants include high street giants like Pound Land, Superdrug and Primark, said the takeover would more than double its portfolio of shopping centres from 21 to 44 and its retail park portfolio from 18 to 29.
It estimated this would increase its fee income stream to £8.2m, based on the fees of £5.7m Ellandi generated in the year ended April 30, 2024.
Newriver chief executive Allan Lockhart said: “The acquisition of Ellandi supports our ambitions to expand our capital partnerships business and grow its fee income.
“We have watched the impressive growth of Ellandi over the last 16 years, despite limited capital resources, which has been in no small part due to the entrepreneurial energy and expertise of Morgan, Mark and their team.
“We believe there will be considerable opportunities in the retail real estate market to accelerate the growth of our business from this point.
“By bringing together two high-quality teams with complementary skills and experience in asset management and regeneration, together with the balance sheet resources we have available, we are well positioned to participate in these opportunities, both on the balance sheet and through Capital Partnerships.”
Mark Robinson, co-Founder of Ellandi added: “Morgan and I are extremely proud of what the team at Ellandi have achieved to date in delivering sustainable change to the UK’s retail places and believe this transaction creates an exciting opportunity to combine two market leading retail asset management businesses with shared growth ambitions.
“Together we will bring unrivalled insights into UK consumer and retailer trends through the extensive data of our enlarged footprint.
“NewRiver is passionate about retail and recognises the important role it plays at the heart of communities, as well as having a similar culture and shared values.
“I look forward to our business becoming part of the NewRiver team and applying our combined expertise in the sector.”