Former Nottingham Eon offices let in £1.1m deal
Property investment firm Regional REIT has let 146,000 sq ft of previously vacant office space at One and Two Newstead Court, on Sherwood Business Park in Nottingham.
An undisclosed electronics firm has taken a 20-year lease at a headline rent of £1,075,000 per year, with five-yearly RPI rent reviews, and breaks at 10 and 15 years.
Regional REIT says the offices have been rented in an ‘un-refurbished’ condition, with the tenant now set to begin a £5m programme of improvements prior to moving in.
One Newstead Court was previously home to utilities firm, Eon.
The landlord’s holding costs associated with the two properties while empty were approximately £700,000 per year.
“This letting is a great example of the demand that exists for office space in the regions where new supply is extremely limited,” said Stephen Inglis, chief executive of investment advisors, ESR Europe.
“This is one of a number of approaches we have received from tenants unable to identify suitable ready-to-occupy accommodation and are therefore now seeking space that can be refurbished to suit their occupational requirements.
“I expect this trend to continue as the supply of ready-to-occupy space continues to contract. Achieving a 20-year term with the tenant undertaking an extensive works programme amounting to around £5m demonstrates the ability of the asset manager to deliver space on terms that strengthen both the company’s income stream and the value of the portfolio, whilst reducing the group’s operational costs.”
