7th Feb 2006 11:09
McKay Securities PLC07 February 2006 PRESS RELEASE McKay Secures Significant Lettings for Speculative South East Office Schemes McKay Securities PLC has completed the letting of top quality speculative officeschemes in Wimbledon and Westminster, totalling 76,100 sq ft (NIA), to undoubtedcovenants for a combined gross rent of £2.59 million per annum. Both leases arefor a minimum of 15 years without break. In Wimbledon, McKay have let the entire office element of Wimbledon Gate (54,350sq ft) to Domestic & General Group Plc on a 15 year unbroken term, at a rent of£1.54 million per annum which equates to £28.60 psf, with a market level ofletting incentives. The building was completed in September 2005, and a groundfloor retail / restaurant unit of 4,350 sq ft remains available to let. In Westminster, the whole of 1 Old Queen Street, SW1 (21,700 sq ft) has been leton a 20 year lease (with a break after 15 years) to a tenant whose identity iscovered by a confidentiality agreement. The agreed rent is £1.05 million perannum which equates to £51.60 psf, with the tenant granted a letting incentiveequivalent to 18 months rent free. The letting was conditional on completion ofthe building, which took place on the 20th January 2006. McKay acquired theproperty in 2001, obtained planning consent for a 30% increase in floor area inMarch 2003, and commenced redevelopment in May 2004 having negotiated earlyvacant possession. Simon Perkins, Managing Director of McKay Securities PLC said "the quality ofthese buildings and the increasingly limited choice for tenants of good qualityoffice accommodation helped secure long term commitments from strong covenants.The lettings were at rents ahead of our expectations when we startedconstruction, due to the improvement in market conditions. Both schemes werefinanced internally and their letting enables the release of further funds fornew acquisitions and other schemes in our development programme". Agents acting for McKay in respect of 1 Old Queen Street were Mellersh & Hardingand Knight Frank, and at Wimbledon Gate were Savills and Cattaneo Commercial.Domestic & General were represented by Colliers CRE. Contacts McKay Securities PLC - 0118 950 2333 Simon Perkins, Managing Director Steven Mew, Director 7th February 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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