The Group’s results for the period was a loss of £513,000 which incorporated the writing off of the acquisition fees associated with the acquisition of The Houndshill Shopping Centre Blackpool.
New Frontier Properties purchased The Houndshill Shopping Centre in Blackpool for a consideration of £100.75 million funded through a £43.90 million (net of issue costs) private placement together with a 5 year term loan for £59.70 million, provided by Deutsche Pfandbriefbank AG.
Following the acquisition of The Houndshill Shopping Centre, the Group’s overall vacancy rate improved from 5.04% in August 2015 to 3.36%, compared to the UK retail void rate of 12.70%. The Group expects the vacancy rate to rise by about 1.00% as some temporary lettings leave the centres after trading over the Christmas period.
New Frontier Properties elected to join the UK REIT regime with effect from 21 October 2015 as it offers certain tax advantages to the Company and guarantees 90% distribution of the aggregate net property rental income to shareholders.
