Picton Prop Inc Ltd Picton upsizes Lidl into former Homebase unit

 
TIDMPCTN 
 
7 January 2019 
 
                        PICTON PROPERTY INCOME LIMITED 
                   ("Picton", the "Company" or the "Group") 
 
                           LEI: 213800RYE59K9CKR4497 
 
 
                 Picton upsizes Lidl into former Homebase unit 
 
Picton has completed an Agreement to Lease with Lidl on its former Homebase 
unit at Parc Tawe North, Swansea.It will move Lidl from its existing premises 
on the retail park, making it the anchor occupier, alongside JD Sports, Pets at 
Home, Home Bargains and Poundstretcher. 
 
Lidl currently occupies a 10,000 sq ft unit on a lease expiring in 2023.  It 
will increase its footprint by 255%, taking the entire 35,500 sq ft previously 
occupied by Homebase. Following enabling works by Picton, Lidl will take a 20 
year lease, with a break after 15 years, at an annual rent of GBP0.39 million, in 
line with ERV.  The lease is subject to five yearly Retail Price Index (RPI) 
based rent reviews capped at 2% per annum.  Homebase was paying a rent of GBP0.44 
million per annum on a lease expiring in 2022. 
 
Lidl will continue to trade from its existing unit, paying GBP0.14 million per 
annum until the enabling works and fit out have been completed, which is 
expected to be in the second quarter of 2019. The current lease will then be 
surrendered. 
 
Homebase, which undertook a Company Voluntary Arrangement (CVA) in August 2018, 
had proposed to reduce the passing rent by 90% if they remained in occupation. 
Rather than agree the proposed terms, Picton decided to serve notice to secure 
vacant possession of the unit. At the same time, Picton negotiated the release 
of a restrictive covenant to allow additional food retailing on the park to 
facilitate this letting transaction. 
 
With the Lidl agreement completed, Picton will pursue the second stage of its 
strategy at Parc Tawe North by focusing on letting the 15,000 sq ft of space 
that became vacant following the insolvency of Poundworld in 2018 and, when 
vacated, the former Lidl unit. 
 
Michael Morris, Chief Executive of Picton, commented: 
 
'By executing a bold strategy of securing vacant possession, releasing a 
restrictive covenant and working with one of our existing occupiers, we have 
been able to secure a high quality anchor for the largest unit on the park on a 
long lease.' 
 
For further information please contact: 
 
Tavistock 
Jeremy Carey/James Verstringhe, 020 7920 3150, 
james.verstringhe@tavistock.co.uk 
 
Picton 
Michael Morris, 020 7011 9980 
 
Note to Editors 
 
Picton is a UK REIT established in 2005. It owns and actively manages a GBP683 
million diversified UK commercial property portfolio, invested across 49 assets 
and with around 350 occupiers (as at 30 September 2018). Through an occupier 
focused, opportunity led approach to asset management, Picton aims to be one of 
the consistently best performing diversified UK focused property companies 
listed on the main market of the London Stock Exchange. 
 
www.picton.co.uk 
 
ENDS 
 
 
 
END

(END) Dow Jones Newswires

January 07, 2019 02:00 ET (07:00 GMT)

Picton Property Income Ld (LSE:PCTN)
Historical Stock Chart
From Mar 2024 to Apr 2024