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LONDON (Alliance News) - Panther Securities PLC Wednesday said it has agreed to let its television production site in south London, previously occupied by Wimbledon Studios Ltd, to an unnamed UK television broadcaster.
Wimbledon Studios Ltd, in which Panther has a 25% interest, was contracted to pay a concessionary rental of GBP490,000 a year. However, the company has been beset by a number of financial problems in recent times and has gone into administration.
"Panther could no longer continue to support the business, as it felt the business would not reach
profitability in the medium term and it was requiring significant funds, which the Panther Board could not justify for a business that was non-core," Panther said in a statement.
The property is now to be let at a rental of GBP1.1 million a year under a 15 year lease, with tenant break options every five years.
As part of the leasing agreement, Panther is contracted to replace the majority of the roof for GBP500,000 and is also contributing up to GBP100,000 towards upgrading the electricity supply capacity.
The tenant is paying two and half years rent in advance, which was a requirement due to the relatively short time until the first break option, and the substantial expenditure required in the property, Panther said.
Panther previously said it was looking at a number of different options for the building, including a possible sale. It has decided the letting was the most beneficial option, and believes the site has strong growth potential.
"The agreement to lease is a UK television broadcaster who Panther believes is expanding rapidly and has outgrown its current premises," it said.
Panther added that the new lease will improve its headline annual rental income by GBP560,000 and its annual profitability by about GBP1 million. The new tenant's rent will be about 8% of Panther's total rental income once the lease is completed.
AIM-listed Panther Securities was quoted up 8.2% at 338.00 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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