McKay Securities secures first tenant at Prospero, Redhill

South East and London office and industrial specialist real estate investment trust McKay Securities announced that it secured its first tenant at Prospero, the recently completed office development in Redhill, on Friday.

The London-listed company said Morrisons Solicitors committed to a 10-year lease taking the entire third floor, totalling 10,643 sq ft, at a rent of £330,000 per annum, equivalent to £31.00 per square foot.

Morrisons was expanding into the new premises from an existing Redhill office, and would occupy over 20% of the 50,370 sq ft asset.

McKay said the 1.2 acre site that Prospero sits on was acquired in an off-market transaction in May 2013 for £2.3m, with the benefit of a planning consent in place.

Following immediate work to enhance the office planning consent and dispose of surplus land to a residential developer, McKay was able to progress the scheme in January 2015 with the benefit of a low land cost.

“Our ability to attract a highly regarded regional law firm such as Morrisons is testament to the quality and appeal of our most recent development, Prospero,” said chief executive Simon Perkins.

“This modern and attractive building instantly impresses upon entering, while its strong sustainability credentials act as a further incentive to today's increasingly environmentally- and cost-conscious tenants.”

Perkins said with a surplus of outdated stock in the market, McKay identified the demand and potential for a contemporary new office building in Redhill, which he described as a “well-connected” South East town popular with corporate occupiers.

“Our ability to lure Morrisons across town to Prospero is a clear endorsement of our conviction, and we look forward to announcing further lettings in due course with encouraging discussions underway with prospective tenants.”