Metric Property Investments, a specialist UK retail real estate investment trust (REIT), has announced the completion the acquisition of a retail park in Newry, Northern Ireland.

Metric Property Investments, a specialist UK retail real estate investment trust (REIT), has announced the completion the acquisition of a retail park in Newry, Northern Ireland.

This is Metric's first transaction following its successful £190 mln (EUR 227 mln) flotation on the London Stock Exchange in March 2010. The acquisition was initially announced on the exchange of contracts on 17 June 2010.

Metric has acquired Damolly Retail Park, Newry and an adjoining development site with outline planning consent for a 14,000 sq ft supermarket from Corbo, for an initial payment of £28.4 mln. The investment volume reflects a net initial yield of 6.25%.

Metric has used its existing cash resources to finance the purchase.

The UK REIT also announced that Mothercare has exchanged contracts to take a new 10-year lease at a headline rental of £20 psf on the remaining vacant unit on the scheme. The park is now fully occupied and the Mothercare letting increases average rental across the scheme from £12.70 psf to £14.10 psf with an average unexpired lease term of 14.1 years. Mothercare is relocating from its existing city centre store.

This transaction will trigger a top-up payment of £3.1 mln to the vendor when the lease with Mothercare completes.