Regional REIT has let 146,262 sq ft of office space at One and Two Newstead Court in Nottingham to an unnamed electronics manufacturer.
The company has signed a 20-year lease at a headline rent of £1,075,000 per annum with five-yearly RPI rent reviews and breaks at years 10 and 15.
The offices, which are located on the 165-acre Sherwood Business Park, have been rented in an un-refurbished condition with the tenant undertaking substantial improvement works at a cost in the region of £5m. One Newstead Court provides 47,120 sq ft and the adjacent Two Newstead Court offers 99,142 sq ft.
Stephen Inglis, CEO of ESR Europe LSPIM, investment adviser to Regional REIT, said: “This letting is a great example of the demand that exists for office space in the regions where new supply is extremely limited. This is one of a number of approaches we have received from tenants unable to identify suitable ready-to-occupy accommodation and are therefore now seeking space that can be refurbished to suit their occupational requirements. I expect this trend to continue as the supply of ready-to-occupy space continues to contract.
“Achieving a 20-year term with the tenant undertaking an extensive works programme amounting to circa £5m demonstrates the ability of the asset manager to deliver space on terms that strengthen both the company’s income stream and the value of the portfolio, whilst reducing the group’s operational costs.”
