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 £0.39 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 £0.44 million per annum on a lease
expiring in 2022.
Lidl will continue to trade from its existing unit, paying £0.14
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 £683 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