Picture: ISTOCK
Picture: ISTOCK

New Frontier Properties says it is close to completing a transaction in Germany that will boost its portfolio in Europe.

The group, which owns malls in some British cities, has bought a warehouse facility in Ireland, explored opportunities in mainland Europe and is "close to executing a logistics transaction in Germany".

"The purchase of the Dublin property and similar pipeline acquisitions provides the group with exposure to the European logistics/warehouse market, enabling the company to benefit from the increase in e-retailing activity across Europe as well as broadening its hard currency exposure," it said.

New Frontier Properties reported a profit of £2.481m for the three months to November, down from £2.799m in the prior year. The group said it had refinanced and extended the £108.2m HSBC loan and raised additional capital.

The capital will be used to fund shopping centres in Middlesbrough and Burton upon Trent in England, together with the recently acquired warehouse in Dublin.

"The purchase of this Dublin property and similar pipeline acquisitions emphasises the benefit from a greater diversity of earnings in both euro and sterling," CEO Mike Riley said.

He said New Frontier’s strategy "continues to retain its retail focus in the UK but has been refined to extend to acquisitions of property, both retail and non-retail in mainland Europe, with a preference given to logistics or warehouse assets in the UK, Germany, Austria, Slovakia, the Czech Republic, Poland, Ireland and the Benelux countries".

andersona@businesslive.co.za

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