London property fund buys Derry retail park

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A Derry retail park has been snapped up by a London-based property developer for almost £20million.

MIPP, a joint venture between Metric Property Investments and the Universities pension fund, paid £17.4million for the Faustina Retail Park - home to Dunelm Mill and B&Q on Derry’s Buncrana Road.

B&Q, who currently pay £1.3million to lease the park, sublet to Dunelm.

Metric Investment Director Valentine Beresford says the Derry retail park proved “another attractive purchase” for MIPP.

“We are very pleased with the material progress that we have made since the creation of the MIPP joint venture. Faustina Retail Park represents another attractive purchase for MIPP delivering strong and long income from B&Q at an attractive initial yield which has the ability to deliver double digit post leverage returns.”

MIPP bought the park out of receivership.

The park also provides 557 parking spaces.