NewRiver REIT acquires Ellandi Management to bolster UK retail and regeneration efforts

NewRiver REIT plc, a leader in the UK retail real estate sector, has announced its strategic acquisition of Ellandi Management Limited, a renowned asset and development management business specializing in retail and regeneration projects across the UK. This acquisition, valued initially at £5 million with potential additional considerations based on performance, significantly enhances NewRiver’s Capital Partnership business, introducing a wealth of experience in managing destination shopping centers and driving regeneration projects.

The move aligns perfectly with NewRiver’s long-term strategy to foster earnings growth in a capital-light manner, expanding its already substantial footprint in the UK’s retail property market. Allan Lockhart, Chief Executive of NewRiver, emphasized the acquisition’s role in growing the company’s fee income through Capital Partnerships, leveraging the entrepreneurial spirit and expertise of Ellandi’s team, led by co-founders Morgan Garfield and Mark Robinson.

Garfield and Robinson, who have successfully grown Ellandi over the past 16 years, will join NewRiver’s executive team as Head of Capital Partnerships and Head of Regeneration, respectively. Their expertise is expected to be instrumental in driving forward NewRiver’s objectives in the retail real estate market, particularly at a time when the sector is ripe for innovative transformation and growth.

The acquisition brings with it a portfolio of 16 shopping center asset management mandates, covering over 6.3 million square feet and working with 10 different partners. Ellandi’s significant involvement in public sector regeneration projects, such as those in Blackpool Town Centre and Strand Shopping Centre in Bootle, adds a crucial dimension to NewRiver’s capabilities. The financials from Ellandi also paint a promising picture, with a fee income of £5.7 million and EBITDA of £1.1 million for the year ended April 30, 2024.

With this acquisition, NewRiver’s Capital Partnership business now manages approximately £1.5 billion in assets across 21 shopping centers and 18 retail parks. Including its wholly owned assets, the company’s total Assets Under Management surge to around £2.0 billion, marking a significant increase in scale and capacity.

Mark Robinson, Co-Founder of Ellandi, shared his enthusiasm for the merger, noting the combined capabilities of the two firms to offer unmatched insights into UK consumer and retailer trends through an extensive data network. He stressed the shared values and cultural alignment between Ellandi and NewRiver, which he believes will foster a strong foundation for future growth and innovation in the sector.

The strategic acquisition of Ellandi by NewRiver is a calculated move to capitalize on the evolving dynamics of the UK’s retail landscape. It reflects a trend where companies are not just expanding through acquisition but are also strategically integrating to enhance their expertise and market reach. This partnership is poised to set a new standard in retail asset management, focusing on resilience and innovation to navigate the challenges and opportunities of the retail market.