Metric Property Investments has acquired three retail properties and one development site in the second quarter of 2012.
The UK specialist REIT bought B&Q units in Londonderry and Camborne for £17.4m and £8.2m respectively, with a net initial yield of 7.4%, and Next & Iceland units in Bedford for £5.7m, with a net initial yield of 7%.
Metric also bought a 90-acre development site in St Austell, Cornwall, for £5.5m, and is considering the development of a 158,000 sq ft retail park anchored by a 68,000 sq ft Sainsbury’s.
Occupancy rates across the portfolio were at 98% during the period, just up from 97.5% in the previous quarter.
Andrew Jones, Metric’s chief executive, said: “We continue to build on the momentum achieved at the year-end and to execute deals in a challenging occupier market. The low average rent across the investment portfolio (£14.70 per sq ft) and our focus on putting retailers at the centre of our portfolio strategy has helped set us apart from the rising vacancies in the general retail property market, especially across high streets and shopping centres, where significant lease expiries and continuing retailer administrations have taken their toll.
“We remain well placed to capitalise on distressed opportunities in the investment market. Our strong balance sheet and our access to capital have allowed us to opportunistically take advantage of increased receivership sales. We see this as a primary source of investment product over the coming year.”
sophia.furber@estatesgazette.com
