MIPP acquires third asset in Orpington for GBP6.25m

By Bridging Loan Directory -

Metric Income Plus Limited Partnership (MIPP) has contracted a sale-and-leaseback transaction with Carpetright plc on their 48,300 sq ft retail unit in Sevenoaks Way, Orpington for GBP6.25 million according to Property Funds World. The purchase reflects a net initial yield of 7.6%.

Carpetright has signed a new 15-year lease on the entire accommodation at an initial rent of GBP506,300 per annum (GBP10.45 psf), with five yearly rent reviews indexed to RPI. The unit is prominently located opposite Springvale Retail Park (101,500 sq ft) and close to Nugent Shopping Park (115,000 sq ft).

MIPP is the recently launched GBP150 million Joint Venture between UK REIT Metric Property Investments and Universities Superannuation Scheme Ltd (USS), where Metric has a one-third interest and receives management fees of 0.4% per annum of Gross Asset Value of the portfolio.

Since formation of the Joint Venture in mid-November, MIPP has invested GBP26.2 million in a total of three assets with rents averaging GBP14.10 psf. The properties are fully let with an unexpired lease term of 17.5 years.

Andrew Jones, Chief Executive of Metric, says: “Secured off-market, this is a compelling acquisition for MIPP and comes only a couple of weeks after the Joint Venture 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.”