CoStar - NewRiver REIT is upbeat on year ahead driven by neighbourhood and development focus

CEO Allan Lockhart tells CoStar he is seeing 'no immediate impact' on purchasing from the Middle East crisis.

NewRiver REIT said it expects its portfolio to remain resilient going into 2026, supported by consumer demand for essential retail and steady performance across its shopping centres and retail parks.

In its March 2026 update, the UK retail real estate investment trust outlined a range of regeneration and mixed‑use redevelopment projects across its estate, alongside stable operational performance. Across its portfolio of around 70 assets, NewRiver reported occupancy of 96% and year‑on‑year in‑store sales growth of 4.3%, rising to 4.9% when accounting for online spend contribution. The portfolio totals approximately 16 million square feet, with £2.3 billion of assets under management, including both owned properties and assets managed for partners.

Among the largest regeneration initiatives highlighted in the update are Grays Shopping Centre in Essex and Bootle Strand in Merseyside. At Bootle Strand, the company confirmed the centre is undergoing a £20 million-plus regeneration programme largely funded by the Ministry of Housing, Communities and Local Government, aimed at redefining the town centre and supporting long‑term economic renewal. The shopping centre, which opened in 1981, is described as a longstanding retail destination for the local community.

Grays Shopping Centre is identified as one of NewRiver’s flagship regeneration projects, with the landlord working towards a major town centre redevelopment that would create around 850 new homes alongside retail uses. The centre sits next to Grays railway station, with direct rail services to London.

At Martlets Shopping Centre in Burgess Hill, West Sussex, NewRiver outlined a consented redevelopment scheme that includes 172 new flats above retail space and a 102‑room hotel, which is currently under offer. The project is being progressed in partnership with Mid Sussex District Council and sits within one of the South East’s fastest‑growing towns.

Speaking to CoStar, chief executive Allan Lockhart said the business has not seen any impact on customer spending as a result of inflation concerns or geopolitical tensions in the Middle East. He said broader economic trends continue to support consumer confidence, pointing to low unemployment, high job vacancies and strong levels of household savings.

“The trends we’re seeing suggest there’s no immediate impact on customers’ purchasing ability,” Lockhart said, adding that consumers remain in a relatively strong financial position.

Lockhart acknowledged that higher petrol prices could influence whether people choose to drive longer distances to shop, but added that NewRiver is well insulated given its focus on urban shopping centres serving local catchments.

“Our centres are focused on essential retail and high‑frequency visits, so people don’t need to travel far to use them,” he said.

Lockhart said the portfolio continues to perform well and described NewRiver as being in a strong cash position. He added that the Capital & Regional acquisition in December 2024 has boosted cash profits, helping increase scale and support earnings.

Looking ahead to 2026, Lockhart said the company wants to build on that momentum, continue optimising the enlarged portfolio and focus on creating value for shareholders. While acknowledging wider economic risks, he said he expects shopping centre and retail park customers to remain resilient, supported by the essential nature of NewRiver’s retail offer and the location of its assets within established communities.