Circle Property PLC Somerset House Letting (8827N)
May 14 2018 - 1:00AM
UK Regulatory
TIDMCRC
RNS Number : 8827N
Circle Property PLC
14 May 2018
14 May 2018
Circle Property Plc
("Circle" or the "Company")
SOMERSET HOUSE LETTING
Circle Property lets 36,300 sq ft to flexible office space
provider taking Somerset House, Birmingham, to 100% occupancy
Circle Property Plc, a specialist regional UK property
investment, development and management company, announces that it
has agreed a new 15 year lease with BE Offices, one of the UK's
leading shared and flexible office space providers, at its recently
completed Somerset House redevelopment on Temple Street in
Birmingham city centre. The agreement follows the recent letting of
both ground floor restaurant units and means that the property is
now at 100% occupancy, just five months after the redevelopment
completed.
BE Offices has agreed to take the entire 36,300 sq ft of office
space over six floors at the property. This new letting increases
Circle's contracted rent roll (as at 31 March 2018) by 11.6% and
means that the property will generate a total rental income of
GBP1,231,479 per annum (after rent frees and incentives expire),
with upwards only five year rent reviews
Circle Property acquired Somerset House in 2016 with the view of
undertaking a full refurbishment of the property upon vacant
possession, which was due four months after completion. Since then,
the Company has implemented a comprehensive refurbishment programme
to modernise the building. This included a successful planning
application to change the use of the 10,956 sq ft ground floor to
restaurants (A3), which led to Circle agreeing long leases with
popular Latin American restaurant chain, Las Iguanus, and with
Camerons Brewery's 'The Head of Steam' pub concept.
John Arnold, CEO of Circle Property Plc, commented: "At Somerset
House we saw an opportunity to apply our asset management expertise
to this very well located but under invested and out-dated office
property. Our strategy was to create a high quality product, well
placed to capitalise on tenant demand in Birmingham, while adding
much needed leisure usage to Temple Street. We acquired,
comprehensively redeveloped and fully leased the building in just
two years. Somerset House is a perfect case study for Circle's
strategy, demonstrating our ability to generate income and value by
identifying compelling investment opportunities in strong regional
locations."
ENDS
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
+44 (0)20 7930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0) 20 7131
Smith & Williamson 4000
Azhic Basirov
Katy Birkin
Radnor Capital
Iain Daly +44 (0) 20 3897
Joshua Cryer 1830
+44 (0)20 3727
FTI Consulting 1000
Giles Barrie
Richard Sunderland
Eve Kirmatzis
This information is provided by RNS
The company news service from the London Stock Exchange
END
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