Warehouse REIT has agreed a 10-year lease renewal with Iron Mountain at Stretton Green Distribution Park in Warrington, Cheshire.
The NYSE-listed storage and information management services firm has occupied a 106,000 sq ft single-let purpose-built warehouse at the distribution park since 2005.
It has agreed a 26% uplift in rent, with a headline rent of £615,000 per annum, or £5.80 per sq ft and no break options.
Warehouse REIT said the deal reflected “the strong demand for high-quality warehouse facilities in the North West, as well as the strategic importance of the unit to the tenant’s UK client base”.
The warehouse was one of seven properties in a 995,100 sq ft portfolio acquired by Warehouse REIT in September 2019 for an initial consideration of £70m. Its value has increased by 7.4% in the subsequent six months.
Paul Makin, investment director of Tilstone Investment Partners, which manages Warehouse REIT’s assets, said: “This major lease renewal with an extremely strong covenant is the latest illustration of our ability to significantly improve the rental tone across Warehouse REIT’s portfolio, actively working with our tenant partners to reach a solution that benefits both owner and occupier.
“While we continue to be rigorously focused on cash collection in order to mitigate the near-term economic challenges posed by Covid-19, we are alive to all opportunities resulting from the consequential acceleration of favourable structural trends which are underpinning occupier demand for space across the portfolio.”
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