Metric Property Investments, the UK specialist retail real estate investment trust (REIT), has conditionally exchanged contracts to acquire Congleton Retail Park in South Manchester. The vendor is North West-based investor and developer, Bluemantle, for £14.86 mln (almost EUR 17 mln). The purchase price reflects a net initial yield of 5.7%, rising to 6.4% upon settlement of 2010 rent reviews and letting of the vacant unit.
Metric Property Investments, the UK specialist retail real estate investment trust (REIT), has conditionally exchanged contracts to acquire Congleton Retail Park in South Manchester. The vendor is North West-based investor and developer, Bluemantle, for £14.86 mln (almost EUR 17 mln). The purchase price reflects a net initial yield of 5.7%, rising to 6.4% upon settlement of 2010 rent reviews and letting of the vacant unit.
Metric is using its existing cash resources to finance the purchase. Completion is scheduled for June 2011.
The 6,000-m2 retail park benefits from an Open A1 planning consent, including food, and has recently secured a new letting to M&S Simply Food which is scheduled to open at the end of October. Other retailers on the park include Focus, Halfords, Carpetright, Laura Ashley and Jolley's Pets.
Following the transaction, Metric has acquired or committed to investments with a value of £107.5 mln or 59% of the net proceeds from its IPO. The portfolio now comprises six retail investments.
