20th February 2019

Lease activity secures increases in passing rents for Pallion Retail Park

Ediston, on behalf of its listed REIT, the Ediston Property Investment Company plc, has successfully completed two further lease transactions at Pallion Retail Park, Sunderland.

GO Outdoors signed an Agreement for Lease (AFL) on unit 2, which comprises 11,345 sq. ft., in June 2018.  The AFL was conditional on Ediston carrying out various repairs to the property.  These repairs were required following Ediston securing early possession of the unit from B&M following its relocation to larger premises on the park.

The works have now been undertaken and a new 10-year lease with a five-year break clause has been completed.  The rent passing of £187,192 per annum is 20% higher than the rent paid by the previous tenant.

This letting follows the lease renewal to The Wallpaper Warehouse which completed in December 2018.  The Wallpaper Warehouse has remained in unit four, which extends to c. 6,000 sq. ft.  Both tenants have signed a 10-year lease with a five-year tenant break option.

Calum Bruce, Director of Investment at Ediston Properties Limited, said: “Despite the headwinds in the retail market, we continue to secure both new and existing tenants for our retail warehouse portfolio.  These two transactions have secured £274,000 of income per annum and show that it is possible to move rents forward on good quality retail warehouse park assets.”