Metric links up With DFS
Published: 11 May, 2011
Metric buys two DFS sites in Inverness and Sheffield for £9.2m
In Inverness, Metric has bought a 20,000-sq ft DFS store and adjoining site on Milburn Road, for £6.9m. Simultaneous with the purchase, Metric has agreed a new 20 year lease with DFS at an initial rental of £420,000pa with annual rent reviews linked to RPI.
Metric will invest a further £1.5m to develop the adjoining site, where planning consent already exists for a new 10,000-sq ft retail unit and where Metric has signed a new 15 year agreement for lease with Carpetright at a rent of £215,000pa with five yearly RPI linked rent reviews. Construction is expected to commence later this year.
In the second transaction, Metric has purchased the former Uno furniture store on St Mary's Road, Sheffield for £2.3m from Warner Estate. Metric plans to invest a further £3.3m refurbishing the property to create two units of 20,000 sq ft and 8,000 sq ft.
DFS has exchanged contracts with Metric to pre-let the 20,000-sq ft refurbished unit on a 20-year lease at an initial rental of £375,000pa. The remaining 8,000 sq ft will be marketed upon practical completion. Works are expected to commence in early 2012 and it is anticipated that DFS will occupy the unit for Christmas 2012 trading.
Metric chief executive Andrew Jones said: "The purchases and asset management activities already in place at Inverness and Sheffield are further examples of Metric using its strong retailer relationships to unlock off-market opportunities which meet the strategic objectives of our customers and deliver value to our shareholders."
