UK Commercial Property REIT Limited (‘UKCM’) which is managed and advised by Aberdeen Standard Investments* and owns a diversified portfolio of high quality income-producing UK commercial property, announces that it has agreed a 27,000 sq ft part-surrender of B&Q’s lease at Great Lodge Retail Park, Tunbridge Wells, and re-let the space to supermarket chain, ALDI Stores Limited on a long index linked lease. The space was formerly sub-let by B&Q to Toys R Us.
ALDI has agreed a 20 year lease at a rent in line with ERV and with five yearly upward only rent reviews, compounded yearly to RPI collared and capped at 1% – 3% per annum. The letting increases the diversity of income from the Park, whilst ensuring that B&Q has an optimal unit for its space requirements. Occupancy is maintained at 100% and the asset’s unexpired lease term is increased by one year to circa 10 years.
Total income generated by the asset is maintained after the expiry of rent-free periods. B&Q has paid £1.1 million to the Company to surrender part of its lease and will continue to occupy the remaining 80,400 sq ft on a lease with nine years remaining under the existing rental terms. ALDI is expected to begin trading from November this year.
Great Lodge is a popular retail park in a convenient location adjacent to Longfield Road, which connects the A21 with the M25 to the north. ALDI joins a diverse mix of tenants including B&Q, DFS, Curry’s, Oak Furniture Land and Harveys Furniture.
Will Fulton, Lead Manager of UKCM at Aberdeen Standard Investments, said: “This letting demonstrates the demand for well-located retail space and is a major achievement for Great Lodge Retail Park following the departure of Toys R Us. ALDI is a great brand and a high quality tenant that will further diversify income, extend the secure lease term, and reinvigorate the asset with a benefit to all our tenants with an expected boost to footfall.” UKCM was advised by Avison Young.
