Metric buys Congleton retail park
Published: 12 October, 2010
Metric Property Investments has bought the Congleton Retail Park in South Manchester from North West based investor and developer, Bluemantle, for £14.86m
Metric Property Investments has bought the Congleton Retail Park in South Manchester from North West based investor and developer, Bluemantle, for £14.86m.
The 65,000-sq ft retail park has an Open A1 planning consent, including food, and has recently secured a new letting to M&S Simply Food which is scheduled to open at the end of October. Other retailers on the park include Focus, Halfords, Carpetright, Laura Ashley and Jolley's Pets.
The park has one vacant 4,000-sq ft unit and there is also an opportunity to develop an additional 7,000 sq ft.
The purchase price reflects a net initial yield of 5.7 per cent. The average passing rent is £14.75 psf, with an average unexpired lease term of 13years.
At the same time Metric has agreed a new lease with Dixons Retail Group at its Nottingham Road Retail Park, Mansfield. Dixons, an existing tenant, will pay £801,000 pa (equating to £17.00 per sq ft) on a new 15-year lease for a 47,000-sq ft Currys megastore.
Metric and Dixons will refurbish the property at a cost of £2.2n. Upon completion, the investment will be fully let and will show Metric a yield on cost of 8.15 per cent.
Following these latest deals, Metric has spent £107.5 million or 59 per cent of the net proceeds from its IPO. The portfolio now comprises six retail investments with rents averaging £13.90 psf. The average unexpired lease length stands at 12.4 years across the portfolio which is 96.8 per cent occupied by rental income.
Chief Executive Andrew Jones said: "Congleton Retail Park is an exciting addition to our portfolio. It has long and strong income let off low rents with the added benefit of an Open A1 planning consent. We are confident that we will be able to attract new high street retailers to the park and leverage off the recent M&S letting."
Savills advised Metric on the acquisition of Congleton. King Sturge advised Bluemantle.