LondonMetric JV to acquire Welsh retail park

3rd Jul 2014 09:32

LondonMetric Property on Thursday announced that its joint venture (JV) with Universities Superannuation Scheme (USS), known as Metric Income Plus Limited Partnership (MIPP), has agreed to acquire Trostre South Retail Park in Llanelli for £12.8m.The purchase price reflects a net yield of 6.8%. The purchase will be funded entirely by LondonMetric from existing resources and upon completion of the transaction LondonMetric's ownership in MIPP will rise to 42%.Andrew Jones, the Chief Executive of LondonMetric, said: "This acquisition is consistent with MIPP's investment criteria and demonstrates that, despite a competitive transaction environment, the JV can continue to source attractive deals that will deliver strong income returns and asset management upside. "Having reached the JV's original investment target in December, today's transaction enables LondonMetric to make progress towards achieving a 50% ownership position. On completion of Llanelli, we will increase our share of MIPP net income by a further £1.0m per annum."Following the transaction, the MIPP portfolio will comprise 19 properties and have an investment value of £173.4m and a running yield of 6.3%. The retail park covers 75,400 square foot and has an average rent of £12.10 per square foot and unexpired lease term of 14.7 years.Shares had risen 1.89% to 140.50p by 09:24.NR