AXA Property Trust Lease Negotiations at Curno

 
TIDMAPT 
 
AXA Property Trust Limited 
 (a closed-ended investment company incorporated with limited liability under 
              the laws of Guernsey with registered number 43007) 
                       LEI Number: 213800AF85VEZMDMF931 
                                (The "Company") 
 
                     LEASE NEGOTIATIONS AT CURNO CONCLUDED 
 
The Board of Directors are pleased to confirm that lease negotiations have 
concluded in respect of the Company's last remaining asset at Curno, Italy. 
These negotiations arose in response to the previously-announced and 
significant deterioration in the tenant's operating results from the property. 
 
After considering potential alternative options for the asset, the Manager 
entered into negotiations in early 2018 with the aim of negotiating overall 
terms that would improve liquidity and maximise potential pricing. 
 
Summary details of the agreed lease terms, which include a material increase in 
the fixed term, are as follows: 
 
Term 
 
15 years fixed, from 1 January 2019 with an automatic nine-year extension 
unless cancelled by the tenant with a minimum 12-month notice period. 
 
Base Rent 
 
Year 1 - EUR 800,000, subject to a rent-free incentive equivalent to five 
months' rent. 
 
Year 2 (i.e. from January 2020) - EUR 830,000, and thereafter to be indexed to 
100% of the ISTAT Consumer Index on an upwards-only basis. 
 
As part of the overall negotiation package the tenant also receives a fixed 
contribution of approximately EUR 330,000. 
 
Variable Rent 
 
There will be an incremental rent of between EUR 1.50 and EUR 2.50 per ticket 
sold above a minimum threshold of 350,000 tickets per year. 
 
Tenant Guarantee 
 
There will be an increased guarantee package as security against the tenant's 
obligations throughout the term of the lease. 
 
The Board consider that the revised lease terms provide the property with 
significant income stability and improved prospects for liquidity and a future 
sale. 
 
Further announcements regarding the disposal strategy for the asset will be 
made in due course. 
 
Company website:retail.axa-im.co.uk/axa-property-trust 
 
All Enquiries: 
 
Investment Manager 
AXA Investment Managers UK Limited 
Broker Services 
7 Newgate Street 
London EC1A 7NX 
United Kingdom 
 
Broker 
Stifel Nicolaus Europe Limited 
150 Cheapside 
London EC2V 6ET 
United Kingdom 
Tel: +44 (0)20 7710 7600 
 
Company Secretary 
Northern Trust International Fund 
Administration Services (Guernsey) Limited 
PO Box 255 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Channel Islands 
 
 
 
 
END

(END) Dow Jones Newswires

December 17, 2018 08:58 ET (13:58 GMT)

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