LondonMetric Property has fully prelet two former B&Q stores in Tonbridge in Kent and Launceston in Cornwall, where it had previously accepted early surrenders.
In Tonbridge, the 42,000 sq ft scheme has been let to Go-Outdoors, Carpetright, Home Bargains, Jollyes and, most recently, Costa. The average rent of £21.40 per sq ft compares with the previous passing rent of £14.80 per sq ft, increasing income by £300,000 pa.
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The lettings have a weighted average unexpired lease term of 15 years (up from seven years) and deliver an additional rent of £600,000 pa.
Refurbishment and extension of the building will complete by July 2017 and follows the recent opening of an M&S Foodhall.
In Launceston, the 30,000 sq ft scheme has been let to M&S Foodhall, B&M and Costa. The average rent of £16.80 per sq ft compares with the previous passing rent of £11 per sq ft, increasing income by £300,000 pa. The weighted average unexpired lease term has increased from 11 years to 15 years. Refurbishment and extension of the building will complete by October 2017.
LondonMetric property director Mark Stirling said: “These occupier transactions have allowed us to capitalise on strong locations to attract new retailers on long leases, at significantly higher rents and delivering an attractive yield on cost. This activity has also benefitted B&Q in right-sizing its estate.
“Once these initiatives are complete, we will look to monetise our success at these two locations as we continue to sell down our mature retail park investments.”
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