M7 Real Estate (“M7”) the pan-European investor and asset manager has, since purchasing Brucefield Industry Park (“Brucefield”) in December 2018 on behalf of a major fund, completed new lettings on over 70,000 sq ft of space. This has increased occupancy to 83.1% (from 73.4%) and the WALT has improved to 5.1 years from 3.9 years.
Brucefield comprises an extensive industrial complex extending to over 557,000 sq ft of modern industrial accommodation together with a development site which extends to approximately 65 acres. Terms were recently agreed on a 10 year lease at 1 Drummond Square, a stand-alone unit of 10,880 sq ft with a tenant’s break at Year 5 and a stepped rent from £51,000 in Years 1-2 to £52,000 thereafter, equating to £4.78 per sq ft; 11% ahead of the acquisition ERV.
Other new lettings on the estate include 1 Rennie Sq (26,100 sq ft), 3 Rennie Sq (9,363 sq ft) 1 Hutton Sq (19,400 sq ft), 1b Young Sq (7,800 sq ft) and 7 Maxwell Sq (6,200 sq ft). Another deal for 10,000 sq ft is also currently under offer.
In addition to the new lettings there is also 46,000 sq ft of space under refurbishment with the works due to be completed in early September 2019.
Graeme Stewart, Asset Manager at M7 commented: “The pace of the new lettings demonstrates the strength of the local market for good space with rents continuing to rise. This investment also further demonstrates the confidence M7 has in the estate.”