Background

The Company obtained planning permission to extend the existing warehouse (43k sq ft) by circa 20 sq ft to meet the tenant’s requirement for additional storage space and agreeing a new reversionary lease at market rental level.

Aim/specification

  • Agreement for lease completed subject to planning/construction of 20k sq ft extension to existing warehouse;
  • New 10-year lease upon practical completion of the extension;
  • Market rent agreed at £6.50 per sq ft; and
  • Open market rent review on 5th

Total cost of works

£2.9m

Impact on EPC

‘D’ to ‘A’

Outcome

The construction phase is due to reach practical completion in June 2025 whilst simultaneously completing the new reversionary lease at market rental level and increasing the valuation of the asset by by circa £1.1m (net of capex) to £7m.

Before:

After: