Ediston’s views on the retail warehouse market as reported by Max King of Money Week

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The Ediston Property Investment Company offers value to those seeking income. The casualty list of retailers and restaurant chains grows ever longer, casting a deep shadow over the retail property market. Blame is apportioned between internet shopping, business rates, overexpansion, rising costs, faltering demand and, inevitably, Brexit. But Calum Bruce, a director of Ediston Real Estate, adds some other factors. Many of the property leases now causing pain were signed before the financial crisis, with upwards-only rent reviews at a time when ample credit encouraged both overexpansion and excess consumer spending, he points out. As a result “60% of the market is over-rented; retailers have simply overpaid”. Those who are struggling have failed to adapt to changing markets. Others worry…

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Two new lettings at Pallion Retail Park, Sunderland

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The Company has signed an agreement for lease (AFL) with GO Outdoors who will occupy unit 2, which extends to c. 12,000 sq. ft. The AFL is conditional on the Company receiving vacant possession of the unit which is currently leased to B&M. B&M has recently upsized to a larger unit on the retail park and will vacate unit 2 by the end of September 2018. GO Outdoors will take a 10 year lease with a tenant only break option at the end of the fifth year. The annual rent will be £198,000, an increase of 27% over the current passing rent. Cancer Research has leased unit C which extends to 4,100 sq. ft. Unit C was vacant when the…

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Birmingham, St Philips Points Lease Restructure

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Weightmans occupy 37,395 sq. ft. across three floors, on three leases which expire in July 2019. The current annual rent is £606,452. The Company has signed an agreement to restructure the terms of Weightmans’ occupation of the property, effective from 1 August 2018. Under the agreement Weightmans will take a new ten year lease with a five year break option, on each of the upper ground and third floors, which extend to a total of 23,187 sq. ft. They will pay a rent of £507,430 per annum, a 45.7% increase on the rent currently being paid on these floors, and will receive an incentive of six months’ rent free. Under the agreement, the tenant will surrender the lease on the…

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Ediston Secures full occupation of Pacific House, Glasgow

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Ediston Real Estate, on behalf of its Clydebuilt LP (a joint venture vehicle with Strathclyde Pension Fund), has let the final suite of Pacific House to Levy McRae, thus securing a fully let investment less than 6 months after acquisition.   Further to this, and acknowledging the importance of this location to their business, Levy McRae have re-geared their existing 6th floor lease to remove the 2021 break option providing for an 8 year term certain.  This letting reflects the purchase business plan, creating a fully let investment, and confirming the strengthening Glasgow office market.

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Ediston targeting a Q3 start for its Crown Street Retail Park, Glasgow

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The site, which is bounded on one side by the M74 and sits in an area of Glasgow which has seen significant housing development over the past 5 years, extends to 11 acres.  The development will provide 125,000 sq. ft. of retail warehouse accommodation and is 65,000 sq. ft. pre-let. Pre-let agreements have concluded with Aldi (18,000 sq. ft.), B & M (23,000 sq. ft. and 7,000 sq. ft. garden centre).  Iceland Food Warehouse has also signed up for 15,000 sq. ft. as have Costa and Burger King for drive through restaurants (1,800 sq. ft. and 3,000 sq. ft. respectively). Building works are expected to commence in Q3 of this year with the Park set for tenant handover in summer…

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Ediston achieve major new letting to B&M Retail Limited at Kingston Retail Park, Hull

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B&M has committed to increase their occupation on the retail park by upsizing from their existing 10,271 sq.ft. unit to a larger unit extending to 24,225 sq. ft.   B&M has agreed to lease the unit immediately following the vacation of the property by Toys R Us who entered administration earlier this year. B&M has signed to a new 10 year lease at an annual rent of £302,813 and receiving an incentive of 12 months’ rent free.  To facilitate the letting B&M will surrender the lease on their existing unit, which expires in 2021, providing another asset management opportunity for the Investment Manager.  Ediston announced that had in fact agreed the transaction with B&M some time ago and prior to the…

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Ediston achieve further lettings at Heathfield Retail Park, Ayr

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The tenant carried out a comprehensive redevelopment of the unit, including mezzanine floor and new frontage/signage zones. As part of this redevelopment Ediston has also secured consent for the sub-division of unit 7/8 to form a new 10,000 sq. ft. unit 7, which has been let to Wren Kitchens for their only store in Ayrshire and Unit 8 is under offer to a national gymnasium operator. Wren Kitchens and the gymnasium will open in autumn 2018. Several other exciting asset management plans are under way and further new retailers will be arriving at Heathfield later this year. Alastair Dickie commented: “DSG is the 12th letting we have completed at this park in the last 3.5 years and the Wren and…

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Ediston /Europa JV presell Plymouth Gateway Retail Park to Royal London

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The 55,000 sq. ft. development, which is under construction, is fully pre let to Wren Kitchens, Sofology, Tapi Carpets, Mothercare, KFC and Costa and is due to complete in August 2018.  The developer received strong tenant interest in the development, in what is a supply restricted market, achieving rents of between £22 and £25 sq ft. Andy McKinlay for Ediston commented:  “Despite what appear challenging times in the retail occupier environment we have experienced good tenant demand for all of the retail warehouse parks within the wider Ediston group.  Plymouth is a prime example of this, where tenants are  confident that signing an Agreement for Lease will result in the unit being available for them to occupy given our track…

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Clydebuilt Limited Partnership Purchases Key Glasgow Office

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The immediate area is subject to significant re-development with Queen Street Station undergoing a £120 million refurbishment and the adjacent building about to be transformed into a modern hotel.  The Buchanan Street pitch on the ground floor is absolute prime and the investment provides the Partnership with multiple options for asset management and a wider opportunity to be part of a market leading re-development project.

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