Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, today announces successful lettings amounting to c.£1.27m per annum. These lettings represent a major uplift in income for the Group as all of these properties were vacant prior to these lettings with the exception of Chatham. The new leases include:
Colwick 80, Mile End Road, Colwick Nottingham: The Group has secured its largest new letting of 2019 to-date. The terms of the lease, agreed in July 2019, sees Hillary's Blinds Limited take 82,380 sq. ft. of industrial space at Colwick 80, Mile End Road Colwick, Nottingham for a period of 10 years and 6 months at a rate of £320,000 per annum.
Victory House, Chatham: Lloyds Bank plc has renewed its lease of the entire property from June 2018 for a further five years at a revised rent of £548,000 per annum. The 48,372 sq. ft. office was previously let on a lease dating back to 1991.
Albert Edward House, Preston: GF Unit 1 comprising 1,894 sq. ft. have been let to a new tenant, Alzheimers Society for a rent of £18,940 per annum.
Birkdale House, Warrington: The detached two storey modern business park unit has been successfully let to new tenant, a FTSE 250 public service provider. The 10,574 sq. ft. unit has been let for £153,327 per annum for 10 years with a six-year break clause.
Witham Park House, Lincoln: Two new lettings have been secured at Witham Park House in Lincoln. These combined lettings to Anglian Water and Distract Limited represent a combined total of 12,287 sq. ft. and contribute an annual income of £137,263 per annum.
Unit 1, Acorn Business Park, Killingbeck Drive, York Road, Leeds: Unit 1 has been let to Aegis Leeds East LLP on a new 5 year lease at a rent of £20,805 per annum. Regional REIT purchased the site at the beginning of 2018 with over 10,000 sq. ft. of vacant space available and the business park is now fully let.
Oakland House, Manchester: A new letting has been secured with an existing tenant, which is upsizing in Oakland House, Manchester. The letting to Please Hold (UK) Limited over a 10 year term increases the tenant’s space by 5,450 sq. ft. which represents an additional income of £68,125 per annum.
Wellington Arcade, Brighouse: A new letting has been secured to Costa Coffee on 3 combined units at Commercial Street and Wellington Arcade in Brighouse. Costa has signed a new 10 year with the landlords works to combine the units due to start within the coming weeks.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:
“These significant lettings demonstrate the continued demand across the UK for high quality regional office assets. Our asset base continues to attract considerable interest from leading corporate tenants as we continue to build and diversify our existing portfolio with a considerable pipeline of attractive opportunities for our asset management team to maximise unit valuations.
We are particularly pleased to have secured our largest tenancy to date at Colwick on an attractively priced longer lease. The tenancy illustrates our adaptable approach to active asset management and the ability to be opportunistic when a longer attractive lease becomes available for the benefit of our shareholders.”