Metric Income Plus Limited Partnership scales up with £17.4 million B&Q purchase (UK)

Metric Property Investments plc ('Metric'), the UK specialist REIT, announces that the Metric Income Plus Limited Partnership ('MIPP' or the 'Joint Venture'), the £150 million (approx. €187 million) joint venture between Metric and Universities Superannuation Scheme ('USS'), has acquired the B&Q Faustina Retail Park in Londonderry from receivers for a total consideration of £17.42 million (approx €21.78 million) (net of acquisition costs).

The out-of-town retail park is situated opposite a proposed 45,000 ft² (approx 4,180 m²) Tesco supermarket. The asset extends to 102,400 ft² (approx. 9,500 m²) and is let in its entirety to B&Q with over 18 years remaining on the lease. B&Q right sized its unit in 2009, subletting 25,200 ft² (2,341 m²) to Dunelm. The park also provides 557 parking spaces.

B&Q is currently paying a passing rent of £1.382 million (approx €1.728 million) p.a. reflecting £13.50 psf. The net purchase price of £17.42 million reflects a net initial yield of around 7.5%.

MIPP, which was established in November 2011, has invested £52 million (approx €65 million) (net of acquisition costs) to date in a total of five schemes. Rents across its portfolio average £13.17 psf with an average unexpired lease term of 17.7 years.

Valentine Beresford, Investment Director, Metric, commented: "We are very pleased with the material progress that we have made since the creation of the MIPP joint venture. Faustina Retail Park represents another attractive purchase for MIPP delivering strong and long income from B&Q at an attractive initial yield which has the ability to deliver double digit post leverage returns."

DTZ McCombe Pierce and Whitmarsh Holt Young advised Metric whilst Colliers International advised the receivers.

Source: Metric Property Investment

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