Metric measures up Loughborough investment
Published: 06 September, 2010
Metric Property Investments has bought the Gorse Covert shopping centre in Loughborough for £16.8m, reflecting a 6 per cent equivalent yield.
The property is a 51,200 sq ft partially-enclosed neighbourhood shopping centre anchored by the 42,400 sq ft Morrisons store and includes a petrol station, parking for 367 cars and seven shop units let to a variety of retailers. It is subject to an overriding lease to Morrisons, at an annual passing rent of £1,017,000. There is an unexpired lease term of 8.1 years.
This is the third asset acquired by Metric since its successful £190m flotation on the London Stock Exchange in March 2010. Chief executive Andrew Jones said: "Gorse Covert Shopping Centre provides Metric with an opportunity to gain exposure to the highly competitive supermarket sector at an attractive yield. The acquisition also offers opportunities for significant asset management initiatives through a potential expansion of the store and a re-gear of the existing lease. Supermarkets are expected to show superior rental growth over the next few years and we believe Metric will benefit from this as well as the diversification the asset will bring to our portfolio."
Wilkinson Williams advised Metric on the acquisition.
