At Greenford Park, H&M Hennes & Mauritz UK Ltd is to occupy the 86,182 sq ft Unit 1 in the most recent phase of development which was completed in March of this year.
The retailer has taken a 10-year lease at an initial rent of £985,000 pa that equates to £11.43 per sq ft – a 6.3% enhancement on the valuers’ December 2007 estimated rental value (ERV), say Brixton. H&M have a 6-month rent-free period and break options after 3.5 years and 7 years. If the first break option is not exercised, H&M will be entitled to a further 3 months’ rent-free, and if the option is exercised they will pay a penalty equivalent to 3 months’ rent.
Following this letting, the 100,423 sq ft Unit 2 – which can be split into three units from 18,900 sq ft – remains available together with 24 further units ranging in size from 3,272 sq ft to 29,193 sq ft. The total space available at the park through letting agents Altus Edwin Hill and CBRE is 260,000 sq ft.
At Premier Park in Park Royal, Pentagon Glass Ltd has taken the 7,043 sq ft Unit 13 on a 10-year lease with 6 months rent-free at an initial rent of £77,473 pa which equates to £11 per sq ft. The lease is structured so that the rent will rise to £88,037 pa (£12.50 per sq ft) in the second year, and £95,080 pa (£13.50 per sq ft) in years 3-5. This equates to an average rent of £90,150 pa or £12.80 per sq ft (2.4% above the valuers’ December 2007 ERV)). There is a tenant-only break option at the expiry of the fifth year of the lease subject to the payment of a penalty equivalent to 3 months’ rent.
CBRE and Colliers CRE are the letting agents at Premier Park which has 137,000 sq ft available in 9 units. 60% of the latest phase of the development has been let within 7 months of completion in November 2007.
Brixton’s Investment Director, Peter Dawson, commented: “These two deals continue Brixton’s earlier successes this year with lettings from our recent development programme, and continues to demonstrate good rental growth from our properties”.