In the first three months of this financial year, our asset managers have continued to capture
rental income growth and improve the quality of our earnings.
Over 352,000 sq ft of lettings in the quarter, achieved at an average of 3.5% above ERV, have
added £7.8 million to our annual rent roll. In addition, 56 rent reviews were agreed on
485,000 sq ft across the portfolio during the quarter, overall at 4.0% above applicable ERV;
confirming the continuing demand from customers for our properties. These include:
- 700,000 sq ft of lettings and rent reviews across our retail portfolio, adding £5.7 million per annum of new rent. Examples are a new letting at Silverlink Retail Park in Newcastle at 16% above the previous ERV, establishing a new rental tone for the park and creating a capital value uplift, and the creation of a new fashion line up at Stafford Shopping Park across the five units which were vacant on our acquisition of the asset earlier this year;
- 47,000 sq ft of rent reviews agreed at 350 Euston Road, Regent's Place, NW1 at an average of £56 per sq ft, 10% above ERV and positive for the Estate;
- £3.5 million per annum of further lettings at 201 Bishopsgate and The Broadgate Tower, EC2, totalling 62,000 sq ft at an average of £56 per sq ft. At 201 Bishopsgate, 36,000 sq ft representing the entire 7th floor has been let to Landesbank Baden-Wurttemberg and, in the Tower, Reed Smith LLP has taken up 13,000 sq ft under an option plus a further 13,000 sq ft; and
- 30,000 sq ft of lettings and rent reviews of retail accommodation in the City completed in the quarter. Retail is an important element of Broadgate, providing services to occupiers and enhancing our investment.
We are continuing to invest in improving our major assets, preserving and enhancing income growth and potential:
- the £12 million refurbishment at 338 Euston Road, Regent's Place of 20,000 sq ft of the offices over three floors, common services and reception areas, is progressing well, contributing to the upgrading of the Estate. One of the three vacant floors has already been let;
- in conjunction with the new developments at 201 Bishopsgate and The Broadgate Tower, we are improving the links between Broadgate and these developments to incorporate them into the Estate. The existing Broadgate Estate is being improved through selective surrenders and refurbishments such as 56,000 sq ft at 6 Broadgate which will be taken back to be refurbished and then marketed in late 2009;
- at Meadowhall where overall retailer performance continues to be good, the former food hall is currently being reconfigured to create larger more regular shaped units, improving the overall appeal; and
- over 250,000 sq ft of retail park extensions are planned, which will expand their offer and further enhance asset quality.
Visitor numbers at Meadowhall and at a number of retail parks where we have monitored traffic
consistently have increased in the first 6 months of this year compared to the same period of last
year.
