Ediston Property (EPIC) has announced that it has signed a lease on unit B, Barnsley East Retail Park, with B&M Retail Limited (‘B&M’). The new letting has increased B&M’s occupation on the park by 40%.
B&M will occupy both units A and B
B&M already occupies the adjoining unit A which extends to approximately 25,000 square feet on a lease expiring in September 2027. Unit B, which extends to around 10,000 square feet, was previously occupied by Carpetright, who completed a Company Voluntary Arrangement (CVA) in 2018. Under the terms of the CVA, EPIC was able to secure vacant possession of the unit to facilitate the new letting.
B&M has signed a lease on unit B and will trade from both units as a single store. The leases on both units will now expire in September 2027. The rent payable on units A and B will be £330,062 per annum, a small reduction of £5,688 per annum from the combined rental income receivable prior to Carpetright’s CVA. However, the new lease to B&M was granted before any lengthy void periods and without any rent free or other incentives being paid. Furthermore, under this agreement, the lease expiry date on unit B was extended from September 2019 to September 2027.
Investment manager’s comments
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Manager, said: “We have been able to provide the right solution for the occupational needs of one of our tenants. This letting shows that well-located retail parks, let off affordable rents remain in demand and that CVAs can be exploited to our advantage.”
About B&M Stores
B&M was formed in 1978 and now describes itself as one of the leading variety retailers in the UK. Since opening its first store in Blackpool, Lancashire, B&M has grown to over 600 high street and out of town stores across the UK, and employs over 26,000 staff. B&M says that it aim is to provide customers with a fun and exciting shopping experience, offering them great products and fantastic value so that they return again and again to a B&M store. The Group also owns JA Woll, a chain of over 80 discount variety stores in Germany and Heron Foods, a 250 store chain of discount convenience stores based in Northern England.
About Ediston Property
Ediston Property Investment Company is a UK real estate investment trust (REIT). It invests in a portfolio of UK real estate assets with the aim of providing Shareholders with an attractive level of income together with the potential for capital and income growth. It invests principally in three commercial property sectors: office, retail (including retail warehouses) and industrial, without regard to a traditional property market relative return benchmark. The Company launched in October 2014 and as of 31 December 2018 it owned 17 properties with a value of £332m. The company has been listed on the London Stock Exchange since October 2014. It has a premium main market listing and trades under the ticker: EPIC. Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.