Metric acquires in Cannock
Published: 07 July, 2011
Metric Property Investments has conditionally exchanged, pending a revised planning approval, on the acquisition of a redevelopment site in Cannock for a total investment of £5.8m.
The two acre site at Longford Island, Cannock in Staffordshire has been acquired from
Warren James Holdings. The site already has restricted retail consent and Metric has
submitted a revised planning application to build a 24,700 sq ft, two unit retail scheme.
Upon receipt of planning, Metric will pay an initial consideration of £1.8m and invest a further £4m in development costs.
Metric has simultaneously signed a new 20 year agreement for lease with DFS to take a
17,000 sq ft unit at an initial rental of £314,500 per annum, with annual RPI uplifts. The
remaining 7,700 sq ft will be marketed upon practical completion. Construction is expected to commence in mid 2012 with handover to DFS in October for Christmas 2012 trading. The scheme is expected to deliver a yield on cost of 7.5 per cent once fully occupied.
Andrew Jones, chief executive of Metric, said: “The retail warehouse investment market remains extremely competitive and we are pleased to be able source another off-market redevelopment opportunity. This again demonstrates our strong relationships both in the investment and occupational markets – we are again delighted to be working with DFS.”
Jones Lang LaSalle advised Metric.
