UK retail REIT Metric Property Investments has created a £150 mln (EUR 175 mln) joint venture with local pension fund Universities Superannuation Scheme to acquire small, high-yielding retail parks across the country.

The partnership, known as the Metric Income Plus Limited Partnership (MIPP), will target assets ranging in value from £2 mln to £20 mln. The target portfolio yield on cost, once established, will be in excess of 7%.

USS has committed an initial £50 mln of equity to MIPP, with Metric providing £25 mln for a one-third equity stake. The joint venture will have a target loan to value of 50%.

MIPP has already signed contracts to acquire two properties from Metric at Inverness and Swindon for a combined cost of £20 mln. At Inverness, MIPP will forward purchase Metric's 2,800 m2 retail park development upon completion for £9.7 mln, reflecting a net initial yield of 6.4%. The park, which is fully pre-let, is due for completion in January 2012.

At Swindon, MIPP has acquired the 5,360 m2 Fleming Way Retail Park for £10.2 mln, reflecting a net initial yield of 7.2%.