31st Aug 2023 09:46
(Alliance News) - 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 GBP8.25 [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.
By Greg Rosenvinge, Alliance News reporter
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