UKCP pre-lets logistics unit in Wembley
UK Commercial Property REIT has fully pre-let its 180,000 square foot ‘Wembley180’ logistics unit in London, it announced on Friday, ahead of the current tenant moving out at the end of March.
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Real Estate Investment & Services
2,146.24
17:09 25/04/24
UK Commercial Property Reit Limited
64.80p
16:45 25/04/24
The FTSE 250 real estate investment trust said it had exchanged contracts on a new 10-year index-linked lease with no breaks with an unnamed international business, at a rent of £2.7m per annum.
It said the lease had allowed it to capture and exceed the property's reversionary rental value, given the strength of its location.
The new occupier was expected to move into the building in October once the firm has completed a comprehensive refurbishment of the asset to a grade A specification.
Works were due to commence as soon as the current occupier vacated the property upon lease expiry at the end of March, the board said.
It described Wembley180 as an “extremely well-located”, large-scale urban logistics centre, which was situated on a 9.9-acre site in Neasden in close proximity to the M1 and M25 motorways, as well as the A406 North Circular, providing direct access to central London.
“This major pre letting to an international business is a significant transaction for UKCM,” said Will Fulton, lead manager of UK Commercial Property REIT at the company’s investment adviser Aberdeen Standard.
“It allows us to secure a long term index linked income stream from a very strong tenant covenant, whilst at the same time capturing the site's higher rent potential.
“We also expect pre-letting this property will have a positive impact on the building's value.”
As a last mile logistics hub, Fulton said.
“Wembley is extremely sought after by businesses looking to service the increasing demands of London's consumers, evidenced by our ability to secure a blue-chip occupier for the entire building before the current tenant has vacated the premises.”