5th Apr 2023 09:51
(Alliance News) - UK Commercial Property REIT Ltd on Wednesday said it signed three new lettings at a combined weighted premium of 40% to previous passing rent, noting "strong occupier demand" for industrial and retail warehouse space.
The London-based commercial property investor said Webcon, a supplier of car parts, agreed to a five-year lease renewal for Unit 1 at Dolphin Industrial Estate in Sunbury-on-Thames, Surrey. The new lease increases annual rental income on the unit by 63% to GBP155,000, UK Commercial Property explained.
Further, the company signed a new 10-year lease without break for Unit 111 at Emerald Park in Bristol for a rental income of GBP92,022 per year, including a nine-month rent-free period, up 21% from previous passing rent.
Lastly, Kentucky Fried Chicken signed a 20-year lease renewal on Unit 4 at Trafford Retail Park in Manchester, with an annual rental income of GBP83,580, up 17% from the previous passing rent.
Will Fulton, fund manager of UK Commercial Property REIT at abrdn said: "Despite the current economic uncertainty, it is encouraging to see a buoyant occupier market for these assets continuing to drive the impressive leasing momentum we have achieved in recent months and allowing us to progressively capture the substantial reversion potential in our portfolio. These latest lettings were agreed at a significant premium to previous passing rents and reaffirms the strength of our high quality, well-situated assets that are diversified by sector and location. Our expert asset management team will continue to extract value from across our portfolio as we drive rental income on behalf of shareholders."
UK Commercial Property REIT shares were 0.5% lower at 50.87 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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