UK Commercial Property REIT (UKCM) has secured new leases across three assets at a combined weighted premium of 40% to the previous passing rent.
Car part supplier Webcon has agreed a five-year lease renewal on the circa 10,000 sq ft Unit 1 at Dolphin Industrial Estate in Sunbury-on-Thames, Surrey. The new lease increases annual rental income on the unit by 63% to £155,000 and includes a three-month rent-free period.
South West Ambulance Service has signed a new 10-year lease without break on the 8,800 sq ft Unit 111 at Emerald Park, Bristol, to be used as an office and a medical supply store. Rental income has increased to £92,022 per annum – 21% ahead of previous passing rent and 2% ahead of ERV.
And Kentucky Fried Chicken has agreed a 20-year lease renewal on the 2,400 sq ft Unit 4 at Trafford Retail Park in Manchester (pictured). The new lease, which includes a tenant-only break at the end of year 15, will generate an annual rental income of £83,580 – 17% higher than the previous passing rent.
Will Fulton, fund manager of UKCM at abrdn, said: “Despite the current economic uncertainty, it is encouraging to see a buoyant occupier market for these assets continuing to drive the impressive leasing momentum we have achieved in recent months and allowing us to progressively capture the substantial reversion potential in our portfolio.
“These latest lettings were agreed at a significant premium to previous passing rents and reaffirms the strength of our high quality, well-situated assets that are diversified by sector and location. Our expert asset management team will continue to extract value from across our portfolio as we drive rental income on behalf of shareholders.”
