30th May 2006 08:30
FOR IMMEDIATE RELEASE30th May 2006 LAP PRE-LETS 20,000 SHEFFIELD RETAIL UNIT TO RIVER ISLAND AT RECORD RENT London & Associated Properties PLC ("LAP"), the fully-listed specialistshopping centre investor, today announces that it has pre-let a new 20,000 sqft retail unit, currently under construction, in its Orchard Square centre inSheffield to River Island at annual rent of ‚£667,500, equivalent to ‚£230 a sqft Zone A - a record for the centre.The new unit is being created from the former Dixons and Index shops, on whichLAP negotiated lease surrenders last year, at a total cost of approximately ‚£2mand is expected to be completed by mid-2007. The two units previously generatedannual rental income of ‚£535,000.This latest development at Orchard Square, which LAP acquired seven years agofor ‚£15.775m, reflects the company's strategy of intensely managing itsinvestment properties as it seeks to enhance both income and capital value. Atthe time of acquisition Orchard Square generated gross annual rents of ‚£1.3m.Including this latest letting the rent roll now stands at ‚£2.2m with furtherrental growth to come through during the course of 2006-7.The pre-letting to River Island will have an important impact on other tenantsat Orchard Square who are currently paying a maximum rent of just ‚£200 a sq ftZone A. Finally, the redevelopment will also create a second smaller shop unit thatwhen let will, it is estimated, produce rental income of approximately ‚£80,000a year. This will add more than ‚£200,000 a year of additional rents from thescheme and take the income generated by this part of Orchard Square to almost ‚£750,000 a year. Additionally the development enables two floors of offices tobe freed up and amalgamated into the existing office space at the front of theshopping centre.John Heller, LAP's Chief Executive, said: "This pre-letting to River Islanddemonstrates the success of our management strategy at Orchard Square and hasenabled us to dramatically improve the centre's rental income and capitalvalue. This also reflects our ability to deliver excellent shareholder returnsfrom our shopping centre assets." Ends. Contact:John Heller, Chief Executive, LAP. Tel: 020 7415 5000Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161 ENDLONDON AND ASSOCIATED PROPERTIES PLCRelated Shares:
London & Associated Properties