Metric Property Investments, a UK-incorporated retail property investment company, has started its initial public offering.

Headed by chief executive Andrew Jones (pictured), the company intends to proceed with a placing and offer for subscription of ordinary shares in the company and its application for admission to trading on the main market of the London Stock Exchange. 

Metric is targeting raising gross proceeds of approximately GBP150m.

Jones was previously head of retail and an executive director of The British Land Company. He is joined by Valentine Beresford, previously European director at British Land, and Mark Stirling, previously asset management director at British Land.

Metric’s strategy is to seize the significant opportunities for value creation resulting from re-pricing and refinancing pressures in the retail property market to create a portfolio of retail assets located across the UK. 

The company seeks to generate attractive returns with sustainable income and strong capital appreciation through active asset management initiatives across its portfolio to enhance income and add capital value through an occupier led approach.

Metric currently is engaged in negotiations with several vendors regarding potential investment opportunities in Metric's preferred sub-sectors in the UK.  It is expected that future acquisition opportunities will be created primarily as a result of the property directors’ experience and strong retailer, property investor and banking relationships.

The directors, including members of their families and family trusts, have committed to an initial investment of GBP6m (on a pari passu basis). The ordinary shares acquired by the executive directors are subject to a lock-up arrangement of three years following admission and the ordinary shares acquired by the non-executive directors will be subject to lock-up arrangements for a period of two years following admission.  

The property directors will also be subject to a continuing requirement to hold 300 per cent of basic salary in equity, further aligning management’s interests with those of the company’s shareholders.

Oriel Securities and J.P. Morgan Cazenove have been appointed as joint sponsors, financial advisers and bookrunners.

Conditional dealings on the LSE are expected to commence on 19 March 2010 and unconditional dealings are expected to commence on 24 March 2010.

Jones says: “We are excited to bring our investment proposition to the public markets at a time when we believe the property market offers significant opportunities for Metric. We believe that the extensive re-pricing of the real estate market and the adoption of our occupier-led approach will present a significant opportunity for Metric to create value for shareholders through our active approach to asset management and through the leveraging of our strong retailer, property investor and banking relationships.”

“We are currently in negotiations with a number of vendors regarding potential investment opportunities and we will continue to source similar opportunities within our preferred sub-sectors of the UK retail property market. Our focus is to generate attractive returns, backed by sustainable income and strong capital appreciation.”