Schroder Real Estate Pre-Let to Premier Inn at the Arndale Centre
2015年9月14日 - 3:00PM
RNSを含む英国規制内ニュース (英語)
TIDMSREI
14 September 2015
Schroder Real Estate Investment Trust Limited
(the 'Company')
PRE-LET TO PREMIER INN AT THE ARNDALE CENTRE
In January 2014 Schroder Real Estate Investment Trust Limited (the 'Company')
acquired the Arndale Centre in Leeds for GBP16.16 million, reflecting a net
initial yield of 9.18% per annum. The acquisition strategy was to generate
income growth from asset management and explore change of use. Progress
executing this strategy resulted in the property being valued at GBP19.75 million
as at 30 June 2015.
The Company now announces that it has exchanged a conditional Agreement for
Lease with Premier Inn Hotels Limited ('Premier Inn') for a pre-letting of a
new 96 bedroom hotel within Arndale House. Arndale House is a substantially
vacant office building comprising 32,000 sq ft over seven floors, which on
acquisition produced a net rental income of GBP45,000 per annum. Arndale House
forms part of the Arndale Centre, a multi-let retail, leisure and office
property totalling 125,834 sq ft that is located in Headingley, a densely
populated suburb 2.5 miles from Leeds city centre.
The Agreement for Lease is conditional on the Company securing planning consent
and converting Arndale House to hotel use, including the addition of a new
floor, at a cost of approximately GBP6.7 million. Subject to these conditions
being satisfied, Premier Inn will enter into a new 30 year lease, with a tenant
only break option after 20 years, at a rent of GBP412,800 per annum with an
initial six month rent free period. The lease will benefit from five yearly
upwards only rent reviews linked to the Consumer Price Index ('CPI'), subject
to a cap of 4% per annum compound. The lease will be guaranteed by Premier
Inn's parent company, Whitbread Group PLC. The target date for completion of
the lease is November 2016, and the construction cost may change dependent upon
on-going negotiations with the proposed contractor.
Assuming the lease completes as planned, Premier Inn will become the largest
tenant at the Arndale Centre, increasing the average unexpired lease term at
the property, assuming tenants break at the earliest opportunity, from 4.2 to
approximately eight years. The letting will also increase the portfolio's
defensive qualities, with Arndale House representing approximately 1.4% of the
portfolio void rate that totalled 9.2% as at 30 June 2015.
Nick Montgomery, Head of UK Investment at Schroder Real Estate Investment
Management Limited, commented:
"The conditional letting to Premier Inn is attractive as the income return
should exceed the return on comparable investments available in the market as
well as enhance value."
For further information:
Schroder Real Estate Investment Management Limited: 020 7658 6000
Duncan Owen / Nick Montgomery
Northern Trust: 01481 745529
David Sauvarin
FTI Consulting: 020 3727 1000
Dido Laurimore / Ellie Sweeney
END
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