SREIT completes GBP342,000 of new retail lettings
Schroder Real Estate Investment Trust (SREIT) has let its vacant retail properties in Chelmsford and Leicester that will, on expiry of the rent free periods, provide GBP342,000 per annum of new rental income.
In Chelmsford, the 6,091 sq ft of retail space at 24 to 25 High Street has been let to jewellery retailer Fraser Hart on a new 15 year lease without tenant breaks for an annual rent of GBP207,000. The letting is a result of SREIT securing planning consent for a new façade to enable trading at both ground and first floor levels. Fraser Hart will have the benefit of a three month rent free and 21 months capital incentive as a contribution to the improvement works.
In Leicester, 7,041sq ft of retail space in 12 to 14 Eastgates has been let to Cruise Clothing Company, a subsidiary of Sportsdirect, on a new 10 year lease for an annual rent of GBP135,000. Cruise has a break option at year five, subject to a six month penalty, and benefits from an initial 12 month rent free period.
Nick Montgomery, fund manager, SREIT, says: “The lettings are further evidence of actively managing the portfolio to reduce the void rate and deliver enhanced total returns for shareholders.”