Prestatyn Shopping Park - Lease restructure
12 February 2019
Ediston Property Investment Company plc
Prestatyn, Prestatyn Shopping Park - Lease restructure and increased rent
Ediston Property Investment Company plc (LSE: EPIC) ('the Company') announces that it has restructured lease terms with New Look at Prestatyn Shopping Park, Prestatyn.
New Look completed a Company Voluntary Arrangement (CVA) in March 2018, under which the annual rent of this unit was reduced from £150,000 to £120,000. Under the CVA the tenant inserted options to break the lease after two and three years. In addition, a landlord's break clause was inserted into the lease which could be activated six months after the effective date of the CVA.
The Company indicated to New Look that it intended to break the lease and relet the property to a new tenant. As a consequence, New Look sought to negotiate a new tenancy to ensure it could continue to trade from the 7,623 sq. ft. store. It has now signed a new five-year lease without any breaks at a rent of £185,000 per annum which is 23% higher than the pre-CVA passing rent and 54% higher than the rent currently being paid under the CVA. The tenant received six months' rent free.
This increased rent and longer lease term builds on the significant increases secured from rent reviews on the park during H2 2018. The Company secured annual rental uplifts from River Island, Card Factory and Next of 24%, 18% and 53% respectively.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company's Investment Manager, said: "There has been a lot of positive activity at Prestatyn Shopping Park as a result of our intensive approach to its asset management. This has seen the income from the asset grow and demonstrates that rental increases are possible on the good assets which dominate their catchments."
For further information:
Ediston Properties Limited (Investment Manager) 0131 225 5599
Calum Bruce
Canaccord Genuity Limited 020 7523 8000
Will Barnett
Neil Brierley
Dominic Waters
David Yovichic
Kaso Legg Communications
Ben Robinson 0203 137 7821
Stephanie Ross 0203 137 7784
Maitland Group (Company Secretary) 0131 550 3763
Donald Cameron
Notes to editors:
Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a premium listing on the Main Market of the London Stock Exchange. The Company invests in UK commercial real estate assets to achieve its objective of providing its 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.
Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.
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