Raft of low-cost stores aids malls firm NewRiver

The march of low price retailers has boosted shopping centres, according to landlord NewRiver Reit, which on Wednesday warned that some of its more upmarket tenants are being more cautious in the “challenging” market.

The FTSE 250 firm, which has properties in Penge and Bexleyheath, said it agreed a number of leases with High Street chains such as H&M and Primark in the half year to September.

Some 505,600 square feet of lettings were signed in the period.

That helped it keep occupancy at its £1.2 billion property empire steady at 97%, despite footfall at stores open for a year or more dropping 0.2%.

NewRiver said it is seeing a trend “of retailers becoming increasingly discerning when making decisions around their physical store portfolios”.

Property director Allan Lockhart added that premium fashion chains are more cautious but he praised discount and value clothing companies for being “resilient”.

NewRiver’s pre-tax profits rose to £27.7 million from £23.1 million.