Retail REIT Metric Property Investments has agreed a sale-and-leaseback with Carpetright on a 48,300 sq ft store in Orpington, Kent.
Metric has paid for £6.2m for the property, reflecting a net initial yield of 7.6%.
Carpetright has signed a new 15-year lease on the property at an initial rent of £506,300 pa, with five-yearly rent reviews indexed to RPI.
The deal has been done through Metric’s £150m jv with Universities Superannuation Scheme, MIPP.
Since formation of the jv in mid-November, it has invested £26.2m in a total of three assets with rents averaging £14.10 per sq ft. The properties are fully let, with an unexpired lease term of 17.5 years.
Metric chief executive Andrew Jones said: “Secured off-market, this is a compelling acquisition and comes only a couple of weeks after the jv was formed. The property is one of a number of pipeline deals that we have identified that support the MIPP strategy and has favourable underlying fundamentals located in a very strong retail pitch with high occupier appeal. The yield on the MIPP portfolio is now 7.1% with 60% of the income subject to RPI uplifts which will produce double digit cash-on-cash returns.”
Harvey Spack Field advised on the deal.
samantha.mcclary@estatesgazette.com
