Specialist retail REIT, Metric Property Investments, has exchanged contracts to buy the Morrisons-anchored Gorse Covert Shopping Centre, Loughborough, for £16.8m from a private investor.
The 51,200 sq ft property is leased to Morrisons, at an annual rent of £1m, reflecting a net initial yield of 5.72% and an equivalent yield of 6%.
There is an unexpired lease term of 8.1 years.
The site also includes a petrol station, parking for 367 cars and seven shop units.
Andrew Jones, Metric chief executive, said: “Gorse Covert Shopping Centre provides Metric with an opportunity to gain exposure to the highly competitive supermarket sector at an attractive yield.
“The acquisition also offers opportunities for significant asset management initiatives through a potential expansion of the store and a re-gear of the existing lease.
“Supermarkets are expected to show superior rental growth over the next few years and we believe Metric will benefit from this as well as the diversification the asset will bring to our portfolio.”
This is the third asset bought by Metric since its £190m flotation on the London Stock Exchange in March 2010.
So far, the company has invested or committed £65m of its net IPO proceeds on property acquisitions.
Wilkinson Williams advised Metric on the acquisition.
nathan.cross@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
