31st May 2016 09:05
LONDON (Alliance News) - London & Associated Properties PLC on Tuesday said fashion retailer TK Maxx has agreed to extend its lease by three years and remove the break clause for the Orchard Square property in Sheffield.
The company, which invests in UK shopping centres and retail property, said TK Maxx has occupied a "key store" at the shopping centre in Sheffield for "some 20 years" and has agreed to remove the break clause on its lease which would have been exercisable in August 2018.
London & Associated Properties added that TK Maxx has also agreed to extend its lease by a further three years to March 2026, giving London & Associated Properties an almost 10-year unbroken term at a current rent of GBP475,000 per year.
"This re-geared lease reinforces Orchard Square's position as one of Sheffield's pre-eminent retail locations and reflects our anchor tenant's commitment to the centre. Although TK Maxx has been a tenant for many years, the current 46,000 square feet store was created for it in 2008 as part of our continual asset management programme that has improved and upgraded Orchard Square's retail offer," said Chief Executive John Heller.
"The unit has always traded successfully and by extending the lease we are ensuring TK Maxx's presence is maintained at the centre. We were aware that the retailer had been approached by other city centre property owners but ultimately it considered Orchard Square as its preferred fashion location," Heller added.
Shares in London & Associated Properties were untraded on Tuesday, having last traded at 24.02 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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