Schroder Real Estate Lettings at Bedford Retail Warehouse Park

 
TIDMSREI 
 
11 September 2015 
 
                 Schroder Real Estate Investment Trust Limited 
 
                                (the 'Company') 
 
                   LETTINGS AT BEDFORD RETAIL WAREHOUSE PARK 
 
Following the Company's acquisition of St. John's Retail Park in Bedford on 15 
May 2015 for GBP31.8 million, early progress has been made implementing the 
business plan.  An agreement for lease has been exchanged to let the single 
vacant retail warehouse unit totalling 4,860 sq ft to Tapi Carpets and Floors 
Limited at a rent of GBP121,500 per annum.  This compares to an assumed rental 
value on acquisition of GBP109,400 per annum or GBP22.50 per sq ft, and an average 
retail rent for the scheme as a whole of GBP16.00 per sq ft.  Completion of the 
lease is conditional on landlord's works which are anticipated to complete in 
mid September at a cost of approximately GBP30,000.  Tapi will benefit from 12 
months rent free spread over the second and fourth year of the term. 
 
Tapi are a retailer of carpets and flooring. They are new entrants to the 
market and have opened nine units to date with the business plan to open 100 
stores over the next three years. 
 
The Company has separately completed a lease extension with Maplin Electronic 
Limited, who has  been occupying a 4,481 sq ft unit at the park on a lease 
which was due to expire in March 2018 at GBP81,576 per annum or GBP18.20 per sq 
ft.  The lease has been extended by a further five years and is now due to 
expire in March 2023.  The incentive to the tenant is six months rent free. 
 The new lease provides for a rent review in March 2018 with the Tapi agreement 
at GBP25 per sq ft providing good indications for a future uplift. 
 
Finally, since acquisition two lettings totalling 9,639 sq ft have completed in 
the adjoining office building, Howard House, at an aggregate rent of GBP91,106 
per annum or GBP9.50 per sq ft.  Approximately 3,200 sq ft remains available to 
let in Howard House.  With no vacant retail units, the remaining floor at 
Howard House represents a low void of 0.9% by rental value over the scheme as a 
whole. 
 
This activity increases the rent at St. John's Retail Park, post rent free 
periods, to GBP2.2 million per annum, which reflects a yield of approximately 7% 
on the gross acquisition cost totalling GBP32.1 million.  The activity also 
increases the average unexpired lease term, assuming tenants break at the 
earliest opportunity, to 7.1 years at the park compared with 6.9 years on 
acquisition.  Further initiatives are being pursued including rent reviews, 
lease extensions, right sizing certain retailers and widening the planning 
consent in order to further increase the rental tone and improve tenant mix. 
 
For further information: 
 
Schroder Real Estate Investment Management         020 7658 6000 
Limited: 
Duncan Owen / Nick Montgomery 
 
Northern Trust:                                    01481 745529 
David Sauvarin 
 
FTI Consulting:                                    020 3727 1000 
Dido Laurimore / Ellie Sweeney 
 
 
 
END

(END) Dow Jones Newswires

September 11, 2015 02:00 ET (06:00 GMT)

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