RDI has completed three new high quality lettings at two of its retail parks, delivering an average uplift of 40% on gross annualised rents reported for the year ending on the 31st of August 2018.
The three new leases were previously let to retailers subject to recent CVA’s or administrations. However, each lease was agreed on well in advance of the previous tenants vacating and at rents ahead of the pre-CVA gross annualised rent. The new lettings comprise a total of 37 850 square feet of space which will generate £1.0 million of gross annualised rental income.
Aldi supermarket and The Gym Group have signed at Priory Retail Park in Merton, South West London on long leases of twenty years and fifteen years respectively. The new lettings have been agreed at more attractive terms with no void period in the interim. Priory Retail Park remains fully occupied and the new tenants complement the current mix of bulky goods retailers and F&B operators, continuing to drive footfall at the well-located asset.
Bargain Buys, a new concept from the team behind Poundstretcher, has increased its unit size at Banbury Cross Retail Park in Oxfordshire, signing a seven year term on the 7,477 sq ft vacant adjoining unit, taking its total holding at the estate to 17,533 sq ft.
Elsewhere across RDI’s six retail parks, the gross annualised rent on a 10,000 sq ft unit at Queens Drive Retail Park in Kilmarnock, which was previously subject to a CVA, has been reinstated to the previous passing rent, meaning a 33% increase on gross annualised rent to £0.2 million.
RDI’s entire retail park portfolio is currently 96.2% occupied, a 140bps improvement on the last reported figures. Recent leasing activity clearly demonstrates the resilient demand for high quality and well-located retail assets that continue to attract customers and deliver strong sales performance.
Adrian Horsburgh, Property Director at RDI, commented:
“These three new lettings, to strong covenants, on long leases with favourable terms resulted in a 40% increase on the previously reported gross rental income and is marginally ahead of pre-CVA rents. Our ability to proactively secure tenants and avoiding any vacancies in the current challenging market, is a credit to both the underlying assets’ quality and our asset management team’s hard work. In the current market environment our focus remains on driving value from our existing assets and leveraging opportunities to generate income, maintain high occupancy levels and boost footfall.”