Metric buys Alban Retail Park, Bedford
Published: 22 November, 2010
Metric Property Investments has bought the Alban Retail Park, Bedford from Parkridgefor £9.2m, reflecting a net initial yield of 6.3 per cent
The Alban Retail Park comprises 65,000 sq ft of restricted Open A1 space let to Focus and Dunelm off a low average rent of £9.40 per sq ft and an unexpired lease term of 3.5 years. Once the outstanding rent reviews are settled the running yield is expected to rise to 7.1 per cent.
Metric has already identified a number of significant asset management opportunities including refurbishing the scheme, re-gearing leases, potentially creating two additional units through reconfiguration of existing space and the development of two small retail/restaurant units totalling 3,000 sq ft for which planning has been obtained.
Metric now has an investment portfolio of £128m across eight retail schemes, with rents averaging £13.40 psf and an unexpired lease term of 11.7 years. Occupancy is 99 per cent by rental income.
Harvey Spack Field advised Metric. Montagu Evans advised Parkridge.