UK REIT, Picton, has issued an update on the portfolio following the completion of a series of office leases, which add a total of £0.9 million of annual income to the headline rent roll.
The transactions follow the completion of recent refurbishment works:
- Metro Building, Salford Quays – Let the 4th floor to HM Government on a 20-year lease subject to break in 2030 at £0.4 million per annum, which was in line with the December 2019 ERV.
- 180 West George Street, Glasgow – Let the 3rd floor on a 10-year lease, subject to break in 2025, at £0.2 million per annum, which was in line with the December 2019 ERV.
- Tower Wharf, Bristol – upsized an existing occupier and extended a lease which was due to expire in May 2020. This increased their floor space by 73% and secured a new 15-year lease, subject to break in 2030, at a rent of £0.5 million per annum, which was in line with the December 2019 ERV and £0.3 million ahead of the previous passing rent.
Michael Morris, Chief Executive of Picton, commented:
“To have recently concluded three significant long-term leases following our refurbishment of these spaces is encouraging.
Our immediate priority is ensuring the health and safety of our occupiers, employees and other partners, as we seek to minimise the impact of the COVID-19 virus. We are continuing to work with our occupiers to help them navigate these uncertain times.
We have a strong balance sheet with primarily long-dated debt, a low LTV of 22% and access to more than £41 million of funding in two undrawn debt facilities.”