LondonMetric Property has a joint venture with Universities Superannuation Scheme called Metric Income Plus Limited Partnership. this joint venture is buying Trostre South Retail Park in Llanelli from Benesco, a charity, for £12.8m, equivalent to a net initial yield of 6.8%.
The 75,400 sq ft Tostre South Retail Park is let to B&Q, Pets at Home and KFC with a vacant unit of 10,000 sq ft, formerly Dreams, which is subject to a two-year rental guarantee. The average rent is £12.10 psf and the average unexpired lease term is 14.7 years. The park is adjacent to the 450,000 sq ft Trostre Shopping Park anchored by Tesco, M&S, Next, Debenhams and BHS.
LondonMetric Property recently agreed to extend its joint venture with USS by two years and expand its ownership in the venture to 50% from 33.3%. As part of that plan, LondonMetric is funding this deal itself; this will have the effect of increasing LondonMetric’s ownership in the partnership to 42%.
The Metric Income Plus Limited Partnership portfolio will comprise 19 properties, including Llanelli, with an investment value of £173.4m and a running yield of 6.3%. The average unexpired lease term across the Joint Venture portfolio is 14.4 years with 25% of the rental income benefiting from fixed uplifts. The average passing rent is £14.20 psf.