(Alliance News) - Warehouse REIT PLC on Monday said it has agreed a 10-year lease renewal with Alliance Healthcare Distribution Ltd, the distribution arm of Walgreens Boots Alliance Inc, at Daneshill industrial estate in Basingstoke, south England.
The AIM-listed investor said health & beauty retailer Boots has been in occupation of Unit 2 of the estate, comprising 113,000 square feet of distribution facilities on a six acre site, since 1989.
The ten-year lease renewal, with no breaks, in return for market standard incentives, has been agreed at a 42% uplift to the previous rent paid, with a headline rent of GBP925,000 per annum.
Warehouse REIT said the agreement reflects the strong demand for high quality warehouse facilities, and the shortage of alternatives, in this location as well as the importance of the unit to the tenant's supply chain.
"This major lease renewal demonstrates our strong asset management capabilities, as we aim to increase rental income and extend the weighted average unexpired lease term of the portfolio by actively working with our tenant partners to secure deals that benefit both owner and occupier," said Andrew Bird of Tilstone Partners Ltd, the external manager of Warehouse REIT.
Warehouse REIT shares were trading 0.5% lower on Monday in London at 103.50 pence each.
Warehouse Reit (WHR)