Metric pays £12m to redevelop retail site

The company used its existing cash resources to finance the purchase of the 7.2 acre site at Kirkstall in Leeds, which has already got outline planning consent for 85,000 sq ft of retail accommodation. Both Bhs and Arcadia, trading as Outfit, have signed up to take new stores following the redevelopment.

They will occupy a total of 35,000 sq ft, about 27 per cent of the completed scheme. Bhs will continue to occupy the existing store until work starts.

Chief executive Andrew Jones said: “Kirkstall represents an excellent off-market opportunity which again underlines the strength of our occupier relationships and the opportunities we are able to unlock when we work in partnership with retailers.

“Whilst the site already has outline consent, we believe we can deliver a better range of units and a more efficient layout.

“We aim to be in a position to commence the redevelopment next year, depending upon pre-letting levels and market conditions.”

Wilkinson WIlliams advised Metric Property Investments in the sale.

Metric now has an investment portfolio of £169m across 12 schemes with rents averaging £12.10 per sq ft and an unexpired lease term of 10.7 years.

Occupancy is 98 per cent by rental income.