30th Dec 2021 07:57
(Alliance News) - Secure Income REIT PLC on Thursday said it has paid Merlin Entertainments Ltd GBP33.5 million in an agreement which will see the Thorpe Park owner extend its lease terms at four assets in return.
Former London-listing Merlin will extend its leases at UK attractions Alton Towers, Thorpe Park, and Warwick Castle, as well as Heide Park in Germany, by 35 years. The lease terms at the assets now run for another 55-and-a-half years.
Rental payments under the leases are unchanged though rent reviews at the UK assets have been altered. They will change to the consumer price index plus 0.5%, shifted from the previous policy of an uncapped yearly upwards only retail price index-linked uplift. The new policy has a maximum yearly increase of 4% and a floor of 1%.
The Heide Park amusement park in Germany will continue to have a fixed 3.3% annual increase review.
Secure Income added: "All of the leases have also been updated to formalise the existing close co-operation between SIR and Merlin in relation to environmental, social, and corporate governance, in particular the reporting and management of environmental matters. CBRE, SIR's independent external valuer, has confirmed that the capital contribution paid represents not more than 50% of any marriage value created as a result of the lease extensions."
By Eric Cunha; [email protected]
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