UK Commercial Property REIT has fully let its 107,000 sq ft industrial development in Bolney, West Sussex.
Asset storage and concierge business Birch Sussex has taken the final 47,000 sq ft unit at UKCM’s Sussex Junction, on a 15-year lease without break.
The deal has increased the rental rate of the property to £14.50 per sq ft, delivering an annual rental income of £677,000.
The deal will be sweetened with two years at half rent and five-yearly open-market rent reviews.
The development was completed in February and comprises three industrial units. The other two were prelet to geological survey company CGG in November 2021 on 15-year leases at a combined annual rent of around £781,000, equating to £12.50 per sq ft.
Will Fulton, fund manager for UKCM at abrdn, said: “The logistics occupier market continues to perform well with demand outstripping supply for well-located, high quality assets, as demonstrated by the speed with which we have been able to let our newly completed units at Sussex Junction, while at the same time improving the rents. There are a number of opportunities to capture substantial reversion potential across our diversified portfolio, which will enable us to drive rental income on behalf of our shareholders in the near term.”
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