16th March 2018

Pets at Home lease extensions

Ediston Real Estate, acting on behalf of its listed Ediston REIT has completed two lease extensions with Pets at Home at Clwyd Retail Park, Rhyl, and Plas Coch Retail Park, Wrexham.

Pets at Home occupies 21,900 sq. ft. across these two retail warehouse parks has agreed to sign a five year lease extension on each unit in exchange for a six month rent free period.  The lease in Wrexham will now expire in June 2027, and the lease in Rhyl will expire in March 2025.  The transactions secure over £350,000 of rental income from a tenant with a good covenant, extend the Company’s weighted average unexpired lease term, and underline the commitment of the tenant to these retail parks.

Calum Bruce, Director of Investment at Ediston said:  “We are always looking at ways to improve the Company’s income stream and completing these transactions does just that.  Securing our tenant for a longer term reduces risk of income voids at the expiries in 2022 and 2020.  Both parks trade well and the tenant has been delighted to commit for longer term occupation.  The improvement in lease length is also expected to be could further benefit our property portfolio as it beneficial to the capital value of each asset.