Edinburgh, Scotland, 2016-Jun-14 — /EPR Retail News/ — Ediston Property Investment Company plc has exchanged contracts to let the entire lower ground floor accommodation at St Philips Point, Birmingham, to the US retailer David’s Bridal.
The destination retailer will open a flagship store of 15,000 sq. ft., which will transform the shopping mall, which was predominantly vacant when the asset was acquired. David’s Bridal is taking a 10-year lease at a rent of £225,000 per annum. The lease will be on full repairing and insuring (FRI) terms and will benefit from upwards-only rent reviews, based on annual RPI compounded and applied in year five, with an annual collar and cap of 1% and 3% respectively.
St Philips Point, acquired by the Company in 2014 for £22.4 million, reflecting a net initial yield of 7.2%, provides a total of 86,650 sq. ft. of offices on 10 floors and 15,000 sq. ft. of retail accommodation on the lower ground floor.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Manager, said: ”This letting is a good example of the Ediston style of asset management: unlocking value from redundant space, transforming the retail offer, while creating an attractive income stream for the Company, with guaranteed rental growth”.