Insider Media Limited

Metric Property Investments, the specialist retail real estate investment trust, has bought the Morrisons-anchored Gorse Covert Shopping Centre in Loughborough for £16.8m. The purchase was made from a private investor.

The 51,200 sq ft property is a partially-enclosed neighbourhood shopping centre anchored by the 42,400 sq ft Morrisons store. It includes a petrol station, parking for 367 cars and seven shop units let to a variety of retailers, which are all sub-tenants of Morrisons.

Metric has said it will use its existing cash resources to finance the purchase.

This is the third asset acquired by Metric since its successful £190m flotation on the London Stock Exchange in March 2010.

Andrew Jones, chief executive of Metric, said: "Gorse Covert Shopping Centre provides Metric with an opportunity to gain exposure to the highly competitive supermarket sector at an attractive yield.

“The acquisition also offers opportunities for significant asset management initiatives through a potential expansion of the store and a re-gear of the existing lease. Supermarkets are expected to show superior rental growth over the next few years and we believe Metric will benefit from this as well as the diversification the asset will bring to our portfolio."

Wilkinson Williams advised Metric on the acquisition.

The deal is Metric's second major transaction in the past couple of months.

The investment company recently purchased Launceston retail park in Cornwall for £13.5m.

The retail park is 69,000 sq ft and gave Metric a net initial yield of 5.86 per cent. Launceston has an average passing rent of £11.20 per sq ft with an average unexpired lease term across the park of 14.8 years.

Andrew Jones, chief executive of Metric, said: “Launceston Retail Park provides Metric with a long income stream and an excellent base for our programme of rental growth initiatives.”