Metric Property Investments plc, the UK retail specialist REIT, announces two transactions for a total gross consideration of £14 million (approx. 17 million).
On behalf of Metric Income Plus Limited Partnership ('MIPP'), the £150 million joint venture between Metric and Universities Superannuation Scheme ('USS') established in November 2011, Metric has acquired the B&Q unit in Camborne, Cornwall from a private property company for £8.2 million (net of acquisition costs), reflecting a net initial yield of 7.25%.
The 48,500 ft² (approx. 4,500 m²) unit is let in its entirety to B&Q at an average rent of £13 per ft² and has an unexpired lease term of 15.7 years. The unit is located adjacent to the 50,000 ft² Camborne Retail Park.
MIPP has invested £59.5 million (net of acquisition costs) to date in a total of six schemes, yielding 7.3%. Rents across the MIPP portfolio average £14.80 per ft² with an average unexpired lease term of 17.3 years. The portfolio is 100% occupied.
Metric has acquired two prime high-street units on Midland Road, Bedford from the receivers to a private property company for £5.7 million (net of acquisition costs), reflecting a net initial yield of 7%. The units total 36,000 ft² and were let to Next and Iceland in November 2011 off average rents of £22 per ft² on lease terms of 10 and 15 years, respectively.
Metric has invested £242 million (net of acquisition costs) across 24 schemes with rents averaging £13.50 per ft². Occupancy across the investment portfolio is 97.7% by rental income with an unexpired lease term of 11.8 years (11.0 years to first break).
Andrew Jones, Chief Executive of Metric, commented: "We are continuing to leverage our occupier relationships and considerable financial resources to take advantage of market uncertainty to acquire good quality, well let real estate at attractive rents. We remain committed to further opportunistic purchases and growing our income portfolio within our MIPP joint venture to deliver post leverage double digit returns."
Jones Lang LaSalle advised Metric on Bedford.
Source: FTI Consulting