Weightmans occupy 37,395 sq. ft. across three floors, on three leases which expire in July 2019. The current annual rent is £606,452. The Company has signed an agreement to restructure the terms of Weightmans’ occupation of the property, effective from 1 August 2018.
Under the agreement Weightmans will take a new ten year lease with a five year break option, on each of the upper ground and third floors, which extend to a total of 23,187 sq. ft. They will pay a rent of £507,430 per annum, a 45.7% increase on the rent currently being paid on these floors, and will receive an incentive of six months’ rent free.
Under the agreement, the tenant will surrender the lease on the first floor, which extends to 14,208 sq. ft. and the Company will refurbish and market this floor to let. It is anticipated that this floor will achieve a rental level in excess of the current passing rent, which could result in an overall increase in net income from the property of c. £220,000 per annum.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Manager, said: “Weightmans has been a tenant in the building for over eight years, so we are pleased to have been able to structure a deal which extends their stay. The increase in the rental tone shows that there will always be demand for good quality offices in the right locations.
We have always said that void space is an opportunity and the first floor is just that. We are confident that with the right refurbishment we will identify a tenant to lease this space and secure additional income for the Company.”
