Iceland has agreed to lease unit 7, which extends to 8,000 sq. ft. and is currently under construction. The unit is being built on previously undeveloped land which was identified at purchase as a potential asset management opportunity. Completion is scheduled for May 2018, which is when the lease will commence. Iceland has agreed to sign a new 10 year lease at an annual rent of £128,000 subject to a standard rent free period. The income return on the capital expenditure is expected to be in excess of 11%.
Calum Bruce, Director of Investment at Ediston said: “This retail park has had no vacant units over 20 years and the tenants trade well. We were therefore confident to start construction on a speculative basis as we were confident of identifying a tenant prior to completion. Securing Iceland shortly after extending the Pets at Home lease, on the same terrace, is hugely positive for the park. We have always been confident that the trading performance of the park, the fact that it dominates in its geographical catchment and serve the population with the retailers it wants would feed through to lease extensions and this new letting.”