Bluemantle to sell Congleton site for £14.8m
CHESHIRE property developer Bluemantle is selling its Congleton Retail Park for £14.86m, it was announced today.
The new owner of the 65,000q ft site which counts Topps Tiles, Focus DIY and Laura Ashley among its tenants will be Metric Property Investments
Metric, a London-based Real Estate Investment Trust which floated on the Stock Exchange in March, is buying the asset from ist cash resources. It expects to complete the deal in June next year.
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Congleton Retail Park has recently secured a new letting to M&S Simply Food which is due to open at the end of this month. The park has one vacant 4,000 sq ft unit and there is also an opportunity to develop an additional 7,000 sq ft unit, subject to planning approval.
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. The average passing rent is £14.75 per square foot, with an average unexpired lease term of 13 years.
In a statement Metric said: “The exchange of contracts is conditional upon Metric concluding satisfactory ground investigation surveys, which it expects to have finalised by December, at which point Metric will assume asset management control of the property.”
Chief executive Andrew Jones, added: “Congleton Retail Park is an exciting addition to our portfolio. It has long and strong income let off low rents with the added benefit of an Open A1 planning consent.
“We are confident that we will be able to attract new high street retailers to the park and leverage off the recent M&S letting.”
Savills advised Metric on the acquisition of Congleton. King Sturge advised Bluemantle.
