Metric acquires Pierpoint retail park for £15.5m
Published: 15 September, 2011
Metric Property Investments has acquired Pierpoint retail park, King’s Lynn from Black Pearl Investments. The purchase price is £15.1m (net of acquisition costs), reflecting a net initial yield of 6.3 per cent.
Pierpoint retail park comprises 66,300 sq ft of space and is fully let to a range of tenants including Homebase, Next, DFS, Comet and Barclays Bank. The average passing rent across the scheme is £15.20 psf, with existing rents ranging from £13.65 psf to £22.50 psf. The average unexpired lease term is 4.1 years.
Andrew Jones, chief executive of Metric, said: “Pierpoint retail park is a terrific opportunity to acquire an asset off low passing rents with high occupier contentment. As leases expire we will aim to increase our total rental income by reconfiguring and sub-dividing some of the larger units into smaller, more attractive premises as well as looking to add new accommodation onto the site.
“Existing retailers at the park are trading well and our aim will be to increase the average rent closer to the high end of the range by taking advantage of the existing Open A1 consent and the relatively short unexpired lease lengths.”
Wilkinson Williams advised Metric. BNP Paribas advised Black Pearl Investments.
