Metric buys Bishop Auckland development site
Published: 28 June, 2011
Metric Property Investments buys ex-Focus site for £2.3m and plans 50,000-sq ft development
The 4-acre site was previously occupied by Focus and has been acquired, subject to planning approval, from Bank of Ireland and Kingsland Estates. Upon receipt of planning, Metric will pay £2.3m for the site and further £8.7m will be invested in development costs.
Metric has already submitted a revised planning application to redevelop a 50,000-sq ft retail park on the site, which adjoins recently opened Tesco and Sainsbury’s food stores. Construction is expected to commence in early 2012, with practical completion scheduled for Autumn 2012. The scheme is anticipated to deliver a yield on cost of 7.75 per cent, once fully occupied.
The deal means Metric has now invested £196m in a total of 15 schemes with rents averaging £12.80 per sq ft and an unexpired lease term of 11.7 years (11 years to first break). Occupancy across the investment portfolio is 98 per cent by rental income.
Chief Executive Andrew Jones said: “We are in discussions with our target retailers and are excited by the high level of occupier appeal already demonstrated. We believe that it will form an attractive and profitable addition to our redevelopment portfolio as well as being complementary to the schemes that we are currently progressing in Leeds and Bristol.”
Jones Lang LaSalle advised Metric.
