Metric Property Investments plc ('Metric'), the UK specialist REIT, announces that the Metric Income Plus Limited Partnership ('MIPP'), the £150 million (approx. 184 million) joint venture between Metric and Universities Superannuation Scheme ('USS'), has acquired Longwell Green, Bristol for a total consideration of £7.8 million (net of acquisition costs), from Cordatus Partners on behalf of the receivers to Castlemore Securities.
The retail park is located opposite Gallagher Shopping Park and comprises 20,400 ft² of open A1 (non-food) consent across two units. MIPP has simultaneously exchanged leases with DFS and Carpetright across the entire accommodation generating a yield on cost of over 7.5%.
DFS has signed a new 20-year lease over 14,300 ft² at a rental of £429,000 per annum with annual RPI rent reviews. Carpetright has signed a new 15-year lease over 6,100 ft² at a rental of £183,000 per annum. The Joint Venture has also submitted a planning application for new 2,500 sq ft pod which will increase the yield on cost to over 8% once constructed and let.
MIPP has invested £33.9 million (net of acquisition costs) to date in a total of four schemes. Rents average £16.30 per ft² with an average unexpired lease term of 17.6 years. The portfolio benefits from RPI/fixed uplift across 62% of its income.
Valentine Beresford, Investment Director, Metric, commented: "Longwell Green represents another off-market acquisition for MIPP and further extends Metric's reach in Bristol, a strong institutional town. The new leases to DFS and Carpetright will generate an attractive yield on cost for MIPP of over 8% once the additional pod units in the car park have been constructed."
Harvey Spack Field advised MIPP and Edgerley Simpson Howe advised Cordatus Partners.
Source: FTI Consulting