Metric Property Investments has made its first acquisition on the high street with a £7.55m deal in Berkhamsted.
The retail specialist has secured a 0.9-acre site from Royal Mail Group for £2.55m and has signed a prelet with Marks & Spencer.
The retailer will take 80% of the site on a 20-year lease for its Simply Food format.
The remaining accommodation, into which Metric will invest a further £5m, will be marketed to high-end restaurant occupiers.
The development will generate an estimated rent of £550,000 a year with a yield on cost above 7%.
Metric expects to submit a planning application for the prominent high street site “before the summer”, following a public consultation in May.
Metric chief executive Andrew Jones said: “Berkhamsted represents our first high street acquisition and is another exciting short-cycle development opportunity for Metric.
“The development will showcase the changing demand from retailers for larger, more efficient floor-plates on the high street.
“This opportunity also represents Metric’s first ‘partnering’ deal with M&S that will satisfy its long-standing requirement for a modern store in Berkhamsted.”
Savills advised Metric; Lambert Smith Hampton advised Royal Mail Group.
