London, January 4
7 January 2019
PICTON PROPERTY INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
Picton upsizes Lidl into former Homebase unit
Picton has completed an Agreement to Lease with Lidl on its former Homebase unit at Parc Tawe North, Swansea.It will move Lidl from its existing premises on the retail park, making it the anchor occupier, alongside JD Sports, Pets at Home, Home Bargains and Poundstretcher.
Lidl currently occupies a 10,000 sq ft unit on a lease expiring in 2023. It will increase its footprint by 255%, taking the entire 35,500 sq ft previously occupied by Homebase. Following enabling works by Picton, Lidl will take a 20 year lease, with a break after 15 years, at an annual rent of £0.39 million, in line with ERV. The lease is subject to five yearly Retail Price Index (RPI) based rent reviews capped at 2% per annum. Homebase was paying a rent of £0.44 million per annum on a lease expiring in 2022.
Lidl will continue to trade from its existing unit, paying £0.14 million per annum until the enabling works and fit out have been completed, which is expected to be in the second quarter of 2019. The current lease will then be surrendered.
Homebase, which undertook a Company Voluntary Arrangement (CVA) in August 2018, had proposed to reduce the passing rent by 90% if they remained in occupation. Rather than agree the proposed terms, Picton decided to serve notice to secure vacant possession of the unit. At the same time, Picton negotiated the release of a restrictive covenant to allow additional food retailing on the park to facilitate this letting transaction.
With the Lidl agreement completed, Picton will pursue the second stage of its strategy at Parc Tawe North by focusing on letting the 15,000 sq ft of space that became vacant following the insolvency of Poundworld in 2018 and, when vacated, the former Lidl unit.
Michael Morris, Chief Executive of Picton, commented:
‘By executing a bold strategy of securing vacant possession, releasing a restrictive covenant and working with one of our existing occupiers, we have been able to secure a high quality anchor for the largest unit on the park on a long lease.’
For further information please contact:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Michael Morris, 020 7011 9980
Note to Editors
Picton is a UK REIT established in 2005. It owns and actively manages a £683 million diversified UK commercial property portfolio, invested across 49 assets and with around 350 occupiers (as at 30 September 2018). Through an occupier focused, opportunity led approach to asset management, Picton aims to be one of the consistently best performing diversified UK focused property companies listed on the main market of the London Stock Exchange.