6 Apr 2018 07:00
6 April 2018
Ediston Property Investment Company plc
Newcastle, Citygate II - EY Lease Extension
Ediston Property Investment Company plc (LSE: EPIC) ('the Company') announces that it has restructured its lease terms with Ernst & Young LLP ('EY') at Citygate II, Newcastle.
EY occupy 41,935 sq. ft. across five floors, on five leases which expire in March 2022. The Company has signed an agreement with them to vary their leases to give an expiry date of 31 December 2027, in exchange for an incentive equivalent to 22 months' rent free. The annual passing rent on these five floors has increased by 20% as a result of the transaction, and EY will be undertaking a refurbishment of their accommodation.
Citygate II was acquired by the Company in January 2016 and extends to 63,524 sq. ft. with 70 car parking spaces. It is multi-let to three tenants, UNW, N+D (London) Limited, guaranteed by Grainger plc, and EY.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company's Investment Manager, said: "Securing EY until the end of 2027 not only improves the income stream of the Company but is also expected to increase the capital value of the asset. We have worked closely with our tenant to give them the lease structure which best suits their requirements."
For further information:
Ediston Properties Limited (Investment Manager) 0131 225 5599
Calum Bruce
Canaccord Genuity Limited 020 7523 8000
Will Barnett
Neil Brierley
Dominic Waters
David Yovichic
Lansons
David Masters 07825 427 514
Michael Lach 020 7294 3645
Maitland Group (Company Secretary) 0131 550 3763
Donald Cameron
Notes to editors:
Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a premium listing on the Main Market of the London Stock Exchange. The Company invests in UK commercial real estate assets to achieve its objective of providing its shareholders with an attractive level of income together with the potential for capital and income growth. It invests principally in three commercial property sectors: office, retail (including retail warehouses) and industrial, without regard to a traditional property market relative return benchmark. The Company launched in October 2014 and as of 31 December 2017 it owned 16 properties with a value of £319.3m.
Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.