Regional REIT has announced a series of lettings 3% ahead of the expected rental value (ERV).
The six leasing deals, which are spread across the portfolio, amount to a total rental income of £589,856 a year and comprise:
- A 9,581 sq ft renewal at Star House in High Wycombe to Star Micronics for five years at a headline rent of £184,450 a year (£19.25/sq ft) – in line with ERV – with a tenant break option after three years;
- The letting of the 12,851 sq ft ground floor at Juniper Park in Basildon to Schenker on a five year term at a headline rent of £182,260 a year (£14.18/sq ft) – 4.9% above ERV. As part of the deal, Schenker will give up the lease of their current second floor office early in the New Year consolidating their occupancy on the ground floor;
- A 10-year lease at Unit 1, Genesis Business Park, Woking, to Gallagher Benefit Services Management Company, comprising 4,594 sq ft, subject to a break option after five years at a headline rent of £105,662 a year (£23.00/sq ft);
- An extension to Imperial Office Furniture’s lease at 9 Portland Street, in Manchester until September 2025. Under the deal the rent payable from the lease renewal in September 2020 will increase to £55,000 a year (£21.84/sq ft) with a nine month equivalent rent free period granted;
- A new letting at Copse Walk, Cardiff Gate Business Park, Cardiff, totalling 2,221 sq ft to Harrison Clark Rickerbys at a headline rent of £29,984 a year (£13.50/sq ft) on a new five year lease subject to a tenant break option on the third anniversary. As a result, Regional REIT now has full occupation following the recent acquisition in September 2019;
- and a 10-year letting to Specsavers at 124-136 High Street, Falkirk, on a new 10 year lease at a headline rent of £32,500 a year (£7.45/sq ft) – 22.6% above ERV.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, the asset manager of Regional REIT, said: “Demand continues to be strong and we are very encouraged by the rental rates that we are able to achieve, ahead of ERV. This further demonstrates that we are witnessing rental growth in our portfolio on a national scale. We also have no shortage of properties to make further acquisitions and to actively manage, improve and subsequently rent out at higher levels or seek an attractive disposal rate.
“The diversity of income across the portfolio continues to grow as we expand our asset base and further enhance the quality and quantity of our rental income and expand our tenant base.”
RGL : Regional REIT secures series of lettings 3% ahead of ERV