Metric Property Investments has added a further two properties to its £150m joint venture with Universities Superannuation Scheme.
The jv, MIPP, has spent £9.8m on a 39,000 sq ft retail park in Haverhill, Suffolk, let to B&Q and Halfords, and a 23,600 sq ft Wickes in Nottingham. The properties were bought at yields reflecting 6.75% and 7.3% respectively.
Metric chief executive Andrew Jones said: “At Haverhill, the low average passing rent (£10.80 per sq ft) is among the lowest across B&Q’s portfolio and provides a solid base for rental growth. Nottingham represents a further retail partnering deal where we have been able to work closely with Wickes to deliver an enhanced unit and at the same time improve the unexpired lease term by 11 years.
“The MIPP portfolio continues to evolve and we remain on target to be fully invested in one year’s time. The portfolio has strong covenants and 34% of the portfolio’s income benefits from RPI/fixed uplifts. The addition of Haverhill and Nottingham provide further income diversification and strong trading platforms.”
MIPP was established in November 2011 and has invested £81m to date in a total of nine schemes, reflecting a yield on cost of 7.2%. Rents across the MIPP portfolio average £14.80 per sq ft with an average unexpired lease term of 16 years. The portfolio is fully occupied.
Bidwells advised Metric and Lewis & Partners advised vendor LaSalle UK Ventures on Haverhill. Harvey Spack Field advised Metric on Nottingham.
samantha.mcclary@estatesgazette.com
