Circle Property PLC Kents Hill Park Update (3596V)
April 08 2019 - 1:00AM
UK Regulatory
TIDMCRC
RNS Number : 3596V
Circle Property PLC
08 April 2019
8 April 2019
Circle Property Plc
("Circle" or the "Company")
CIRCLE ACHIEVES 100% OCCUPANCY AT KENTS HILL BUSINESS PARK
Circle Property Plc, a specialist regional UK property
investment, development and management company, has made further
progress with its active portfolio and asset management having
leased the remaining 21,150 sq ft of vacant space at Kents Hill
Park in Milton Keynes to Grand Union Housing Group Ltd ("Grand
Union Housing"), a leading UK housing association.
Grand Union Housing will take the entire first floor of the
refurbished 40,000 sq ft K2 building at Kents Hill Park on a 10
year lease at a headline rent after incentives of GBP17.50 per sq
ft or GBP352,625 per annum. The rent exceeds the building's current
estimated rental value ("ERV") and increases the rental tone for
the business park. There will be a five year rent review in line
with the Consumer Price Index, with a minimum compound increase of
1% per annum and maximum increase of 4% per annum. Under the terms
of the lease, Grand Union Housing will also have 100 on site
parking spaces.
This latest letting follows Circle's lease in November 2018 to
Deutsche Telekom subsidiary, T-Systems Ltd, which took 13,500 sq ft
of space on the ground floor. The remaining space on the ground
floor at K2 is let to Selo Doors, with around nine years remaining
on the lease.
Kents Hill Park was acquired by Circle in December 2013 and
comprises an office and conference facility, consisting of eight
self-contained buildings with a total area of 246,598 sq ft. Six of
the buildings are let to Compass Group Holdings Ltd on a 25 year
lease, ending 2041, which was regeared in September 2018 to remove
Compass's 15 and 20 year break options.
The remaining two buildings were fully refurbished and rebranded
as K1 and K2. The 28,000 sq ft K1 building is fully let to three
tenants.
John Arnold, CEO of Circle Property Plc, commented: "This latest
letting at Kents Hill further underlines our ability to create
shareholder value by acquiring and asset managing well located
buildings through a range of repurposing, lease regearing and
redevelopment initiatives. With both K1 and K2 and Kents Hill now
let to a range of clients on long leases we have created an
institutional quality asset and we look forward to the full
occupancy being reflected in our next portfolio valuation. We will
now begin the process of assessing and preparing to bring forward
the other value enhancing asset management initiatives we have
identified across the park."
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
ENDS
Circle Property Plc +44 (0)20 7930 8503
John Arnold, CEO
Edward Olins, COO
+44 (0) 207 397
Cenkos Securities 8900
Azhic Basirov
Katy Birkin
Radnor Capital
Iain Daly +44 (0) 20 3897
Joshua Cryer 1830
FTI Consulting +44 (0)20 3727 1000
Giles Barrie
Richard Sunderland
Eve Kirmatzis
circleproperty@fticonsulting.com
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END
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