UK REIT Metric Property Investments has bought a unit at retail complex Alban Park, St Albans, Hertfordshire, for £4.6m, reflecting a net initial yield of 7.75%.
The 25,300 sq ft shop is let to soft furnishings retailer Dunelm Mill at an annual rent of £375,000, with an unexpired lease term of 8.1 years.
Metric, which will use existing cash to finance the purchase, plans to refurbish, reconfigure and extend the site.
It bought the site from a consortium of Irish investors, who bought it in October 2006 for a sub 5% initial yield.
Metric chief executive Andrew Jones said: “This is an opportunistic purchase to acquire a good asset in a very strong retailing town, let to an excellent tenant. The investment offers a very attractive income yield, with some asset management opportunities to refurbish, reconfigure and extend the accommodation in the medium term.”
Strutt & Parker advised Metric.
jack.sidders@estatesgazette.com
