Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Balanced Commercial Property Trust Ltd on Thursday said it secured two ‘key’ leasing initiatives in its industrial portfolio for undisclosed sums.
The London-based commercial property investment trust said pet care and food company Nestle Purina agreed to a 10-year lease extension for unit 8 of Hams Hall distribution park in Birmingham, beginning in March 2025 and with a break at the end of the fifth year.
Balanced Commercial Property Trust said the unit at Hams Hall was a ‘key logistic hub within a strategic West Midlands location’ and added that the lease ‘shows the tenant’s continued commitment to the building and a rent review in March 2025 is anticipated to show a significant uplift to the current passing rent’.
The tenant at Hams Hall will benefit from a 3.5-month rent-free period on commencement of the new lease, Balanced Commercial Property Trust said.
Meanwhile, sportswear clothing brand Montirex Ltd signed a 10-year lease with a five-year break clause for Balanced Commercial Property Trust’s Hurricane 52 on the Estuary business park in Liverpool.
‘Hurricane 52 is a newly constructed and highly specified logistics unit of 52,500 [square feet] with strong [environmental, social and governance] credentials,’ said Balanced Commercial Property Trust.
‘This letting followed a competitive ’best bids’ process between three occupiers, and the rent achieved at £8.25 [per square foot] shows an attractive premium in excess of 7% to the unit’s estimated rental value.’
Balanced Commercial Property Trust Fund Manager Richard Kirby commented: ‘These latest lettings underscore the demand for industrial and logistics assets in the UK, and it is encouraging to see such a resilient occupier market. Active asset management and the delivery of initiatives such as these are key to converting rental growth into income and capital performance.
‘The portfolio offers a wealth of value-add potential, and we are seeing robust levels of occupational activity on the portfolio at a critical juncture within the market cycle.’
Shares in Balanced Commercial Property Trust were up 1.4% to 69.37 pence each in London on Thursday morning.
Copyright 2023 Alliance News Ltd. All Rights Reserved.