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15 Dec 2009 07:00
To: Company Announcements
Date: 15 December 2009
Company: AXA Property Trust Limited
AXA Property Trust Limited is pleased to announce that it has signed a lease with the German supermarket retailer Edeka at its Phoenix Centre retail park at Fuerth in Bavaria, Germany. The 15.5 year fixed term lease of the new anchor store is conditional upon achieving a building permit to develop the 3,737m² unit. The building permit is anticipated to be received in the first quarter of 2010. Delivery of the new unit is expected by October 2010.
Edeka currently occupy a 2,500m² unit, which will be refurbished and let to other existing tenants keen to expand within the retail park, as well as being marketed to new occupiers which will improve the tenant mix and the retail destination for the catchment population.
In addition this development project and the new lease to Edeka will secure the long-term prospects of the wider centre and is expected to have a positive impact on rental levels across the scheme.
The budget cost for the development of the 3,737m² unit and refurbishment of the 2,500m² unit has reduced to £4.3 million (€4.8 million). The project shows a yield on total cost (including current valuation of land and the former Edeka unit) of 9.43%. The Investment Managers believe that implementation of this project will provide exciting capital and income growth potential.
The Board is satisfied that the company holds sufficient cash to undertake this development facility. After deducting the £4.3 million allocated to this development project, the Company will hold £14.2 million of cash. The Board is satisfied that it is able to finance the working capital and the uncommitted capital expenditure and maintain substantial headroom to meet a potential future requirement to partially pay down its debt.
The Board also recognises that the refinancing negotiations relating to the main debt facility have been protracted, but is committed to achieving the best possible terms and is confident that the refinancing will be resolved satisfactorily.
Tom Durie / Jonathan Walker
Oriel Securities
Tel: 020 7710 7623
Neil Winward
AXA Investment Managers
Tel: 020 7330 6619
Martin McGuire
AXA Real Estate
Tel: 020 7003 1230
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