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 vacation of the property by Toys R Us ensuring that the company suffered no rental void. The commitment then allowed the asset manager to secure vacant possession from the administrator.
Calum Bruce, Director of Investment at Ediston said: “Identifying a tenant so soon after the administration of Toys R Us is positive, not just for the asset but for the out of town retail market as a whole. It proves that there is good tenant demand for well-located retail parks which trade well and dominate in their location.
Agreeing this letting secures a good covenant on a long lease, factors which improve the quality of the Company’s income stream. We are already looking for a new tenant to take the smaller unit and are working on a few leads. Our experienced team of retail warehouse focussed surveyors have proven that demand for out of town retail units is robust and parks with the right tenant mix, in the right location and off sensible rents can not only withstand the current market disruption in the retail sector but also thrive in challenging circumstances. ”