Metric buys in Milford Haven
Published: 14 December, 2010
Metric Property Investments has bought the Havens Head Retail Park in Milford Haven from Land Securities for £14.4m, reflecting net initial yield of 6.8 per cent.
The park comprises 85,700 sq ft of Open A1 space and is anchored by a 38,000-sq ft Tesco with an unexpired lease term of 17 years. The scheme has eight units, and tenants include Boots, Peacocks, and Littlewoods with an average passing rent of £12.10 per sq ft and an unexpired lease term of 13.8 years.
Following this transaction, Metric has an investment portfolio of £143m across nine retail schemes, with rents averaging £13.25 per sq ft and an unexpired lease term of 11.8 years. Occupancy is 99 per cent, by rental income.
Andrew Jones, Chief Executive of Metric, said: “This is our first on-market acquisition and it represents a good opportunity to acquire a long dated food store and open A1 retail park investment off low rents and at an attractive yield. There are asset management opportunities to further extend the Tesco store, increase the rental tone and to continue to improve the tenant mix.”
And Dominic O’Rourke, head of retail warehousing at Land Securities, added: “The sale process attracted a good level of interest, reflecting the asset management initiatives we have undertaken at the scheme, such as the extension of the Tesco food store. The sale demonstrates our commitment to actively recycling capital in the market, exiting schemes where we have added value through asset management, and looking for new opportunities to leverage our expertise.”
Savills advised Metric. DTZ advised Land Securities.
