Legal & General Property announces three new lettings with TK Maxx, the fashion and homeware retailer, across three of its funds, representing circa 51,000 sq ft of space and providing in excess of £2 million of added value.
Additionally, on behalf of a further fund, LGP has purchased the long leasehold interest in two retail units in Southampton which trade as a TK Maxx and Card Factory.
60/66 Above Bar Street in Southampton has been acquired from UBS Global Asset Management on behalf of the Managed Fund for circa £12.5 million, reflecting a net initial yield of 7.84%. The property which comprises just over 48,000 sq ft is located on Southampton’s principal retail thoroughfare and traditional prime pitch. The larger of the two units is arranged over three floors and let to TJX UK Ltd (trading as TK Maxx on a lease expiring in 2022, whilst the other unit is let to Sportswift Ltd (trading as Card Factory) on a lease expiring in 2020.
At Colney Fields Shopping Park, London Colney, Hertfordshire, LGP has surrendered an existing lease with SportsDirect and re-let Unit 2 to TK Maxx on a new 15 year lease, subject to a tenant only break at year 10, at a rent of £61.76 per sq ft, with 10 months’ rent free. The property, which comprises 11,415 sq ft of space, is held in 50:50 joint ownership between the Life Fund and Linked Life Fund, and was previously let to SportsDirect until December 2019. Other occupiers at the park include Next, Monsoon and New Look.
At Highbridge Retail Park, Waltham Abbey, LGP has secured the surrender of Mothercare’s lease, simultaneously re-letting the 17,000 sq ft unit to TK Maxx on a new 15 year lease, subject to a tenant only break at year 10, at an average rent of £13.99 per sq ft, with three months’ rent free and £400,000 capital contribution. This latest letting continues the transformation of this retail park by the Linked Life Fund towards a predominantly open A1 led scheme.
At 92 Pydar Street in Truro, Cornwall, TK Maxx are an existing tenant. LGP completed a nine year reversionary lease from March 2013 at a reduced rent of £313,600 pa and 12 months capital contribution. The property, which is held by the Linked Pensions Fund, comprises 22,697 sq ft of GIA.
Michael Barrie, Director of Fund Management at Legal & General Property, said:
“These transactions demonstrate the significant advantages of the depth and breadth of LGP’s platform. Owing to its size, diversity and penetration, along with its wealth of in-house skill and expertise, LGP boasts an almost unrivalled network of contacts. These enable us to not only get close to major occupiers, fully engaging with and understanding their strategic requirements, but also provides us with first class knowledge of localized markets and sub-sectors.
“Furthermore, the lettings highlight our ability to actively manage our portfolios with in excess of £2 million of added value on day one.”