6th April 2018

Ediston REIT completes major lease regear at Citygate, Newcastle

Ediston Real Estate, acting on behalf of its listed Ediston REIT has restructured lease terms with Ernst & Young LLP (‘EY’) at Citygate II, Newcastle.

EY occupy just over two thirds of Citygate being 41,935 sq. ft. across five floors, on five leases which were due to expire in March 2022.   The tenant has now signed an agreement to vary their leases to move out the expiry date of 31 December 2027 and increase the annual rent passing by 20% resulting in a significant uplift in Capital value of the asset.  The tenant will receive a 22 month rent free period as an incentive during which EY will also be undertaking a refurbishment of their accommodation

Citygate II was acquired by Ediston in January 2016 and extends to 63,524 sq. ft. with 70 car parking spaces.  It is multi-let to three tenants, UNW, N+D (London) Limited (guaranteed by Grainger plc) and Ernst & Young.

Calum Bruce, Director of Investment at Ediston said: “Securing EY until the end of 2027 not only improves the income stream of the Company, de risking any potential void in 2022, but has also increased the capital value of the asset. We have worked closely with our tenant to give them the lease structure which best suits their requirements and allowing them to improve their accommodation for the benefit of their staff and clients.