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Ediston acquires Newcastle office for £18.95 million

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Ediston Property Investment Company plc has acquired Citygate, a modern office building in Newcastle, for £18.95 million (net of acquisition costs) from Hanro Limited.

The purchase reflects a net initial yield of 6.57% and will be funded from a combination of cash resources and an increase of £12.42m in the existing debt facility with Aviva Commercial Finance Limited at an all-in rate of 2.95%. The loan-to-value ratio of the Company’s property portfolio following this acquisition will be 29.01%.

Citygate provides 63,524 sq. ft. of modern office accommodation with 70 car parking spaces. It is let to three tenants EY, UNW, and N+D (London) Ltd, guaranteed by Grainger plc, and has a weighted average unexpired lease term (WAULT) in excess of 6 years. Around 89% of the income benefits from upward-only rent reviews in 2017, with the remaining 11% being reviewed in 2018.

As a result of this acquisition, the 13th since the Company launched in October 2014, the Company is almost fully invested.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “It is our aim to enhance the portfolio by purchasing regional office buildings which offer solid income streams as well as reversionary potential in the short term. Citygate fits the brief. It is well placed to capitalise on the rental growth forecast to materialise in the city, owing to the favourable supply-demand balance”.

Ediston purchases Plas Coch Retail Park, Wrexham for £22.4 Million

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Ediston Property Investment Company plc has acquired Plas Coch Retail Park in Wrexham for £22.4 million (net of acquisition costs) from Diageo Pension Trust Limited. The net initial yield is 7.35% from March 2016, on expiry of a rent-free period. The acquisition was funded from existing cash resources.

Plas Coch is a well-located retail park, totalling 94,000 sq. ft., adjacent to a Sainsbury’s supermarket and an Aldi foodstore. It is let to seven national tenants and benefits from a weighted average unexpired lease term (WAULT) in excess of 10 years. TK Maxx has recently relocated to the park from Wrexham town centre, reinforcing the attraction of the park to retailers.

The Company has invested £142 million in 12 assets since listing in October 2014. These acquisitions, coupled with successful asset management initiatives, have resulted in the WAULT of the portfolio doubling to 10.13 years over the same period, providing good income security for shareholders.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “The purchase continues our strategy of growing the Company in a sustainable and credible manner by acquiring high-quality assets with a solid income stream and asset management angles to exploit. The yield is attractive and is in line with our investment strategy”.

Ediston Acquires Leisure Portfolio for £10 million

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Ediston Property Investment Company plc (LSE: EPIC) announces that it has acquired three leisure properties for £10.00 million (net of acquisition costs), reflecting a net initial yield of 8.60%. The acquisition was funded from existing cash resources.

The properties comprise two units in Liverpool and Hartlepool, which are let to Mecca Bingo, and a third unit in Telford, part of the Southwater Square leisure development, which is let to Rank Group Gaming Division. All three leases expire in September 2022, giving an unexpired term of seven years. The passing rent of the properties is £910,085 per annum.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “The purchase provides the company with a robust income stream at an attractive initial yield but with asset management angles to be exploited”.

Ediston Signs Major Office Letting In Edinburgh

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Ediston Property Investment Company plc (LSE: EPIC) announces that it has let the entire office property at 145 Morrison Street, Edinburgh, to Capita Business Services Limited.

Capita has entered into a 15-year lease, without a break clause, for the recently-completed 26,894 sq. ft. office building in the centre of Edinburgh. The rent is £676,136 per annum, reflecting an overall rate of £25.14 per sq. ft. This building constituted the largest void in the Company’s portfolio.

145 Morrison Street is a Grade A office over ground and four upper floors. The property is located between the newly refurbished Haymarket Train Station, the EICC and heart of the Exchange District, one of Edinburgh’s key financial services locations.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “Securing a firm of Capita’s stature is testament to the quality of the building and strength of the location. The asset was developed to be a headquarters building for a single occupier and it is satisfying to see that happen”.

Ediston Acquires Daventry Retail Park For £11.95 Million

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Ediston Property Investment Company plc (LSE: EPIC) announces that it has exchanged contracts to acquire the Abbey Retail Park in Daventry from Threadneedle Property UK Select Fund for £11.95 million (net of acquisition costs and rental guarantees on two vacant units).  The yield will be 7.80% when the Park is fully let.

The property provides 63,160 sq. ft. of retail warehousing, anchored by Homebase, with parking for 386 cars, on a five acre site. The weighted average unexpired lease term is just under ten years.  Two units totalling 11,666 sq. ft. are vacant.  Two kiosks totalling 2,700 sq. ft. are also vacant but benefit from a two-year rent, rates and service charge guarantee from the vendor.  This will be drawn down as income until the units are let and income producing, or the guarantee period ends.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “This purchase is in line with our strategy of acquiring quality assets with good, core income streams, but with angles to be exploited through active asset management and a focused letting strategy. We are confident that we will be able to attract high calibre tenants to the vacant units.”

Ediston Invests £16.80 Million in Scottish Retail Warehouse

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Ediston Property Investment Company plc (LSE: EPIC) announces that it has exchanged contracts to acquire a B&Q Extra retail warehouse in Coatbridge, Scotland, from Harcourt Life Assurance Company Limited for £16.80 million (net of acquisition costs), which reflects a net initial yield of 7.46%.

The property extends to 103,000 sq. ft., plus a garden centre and builders’ yard, with parking for 600 cars, on a site of 4.27 acres. It is let to B&Q plc until December 2022 with a rent review in 2017, and offers a solid income stream for the Company, which can be further improved through asset management and development.

Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “This acquisition provides the Company with good secure income in the retail warehouse sector. We believe it is a property that offers a number of opportunities for us to implement the Ediston style of asset management to enhance its income profile and returns over the coming years.”

Ediston Acquires Midland Bridge House, Bath

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Ediston Property Investment Company plc (the “Company”) announces that it has acquired an office property in Bath from a private investor for a purchase price of £4.39 million, funded from existing cash resources.

The recently-refurbished property extends to 18,500 sq ft over ground and three upper floors. It occupies a prominent corner position fronting the A36 Lower Bristol Road. It is situated within the Bath City Riverside Enterprise Area, which is undergoing significant investment and development.

The building is let to Withy King LLP, a firm of solicitors, for a term expiring in March 2023. The rent rises to £323,330 per annum, equivalent to £17.50 per sq ft, in March 2017, producing a yield of 7% at that point. There is a rent review in March 2018.

Commenting on the transaction, Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “Midland Bridge House provides a good-quality income stream, which has the potential to grow owing to the favourable supply and demand dynamics in the Bath office market. Currently, the Grade A vacancy rate is estimated to be as low as 1%. As part of the Western Riverside regeneration area the surrounding land is earmarked for development for a range of uses, which should further improve the fundamentals of this asset”.

Capita extend lease at Cutler’s Gate, Sheffield

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Ediston Property Investment Company plc (the “Company”) is pleased to announce that it has completed lease renegotiations on the 61,645 sq. ft. office property at Cutler’s Gate, Parkway, Sheffield with its sole tenant, Capita Business Services Limited.

The Company has granted a reversionary lease which extends the unexpired term from 10 years to 25 years. The annual rent passing will remain at c.£1.05m but the five yearly upward only rent review provisions will be replaced by annual uplifts in line with the Retail Price Index (RPI) throughout the term. The RPI increase will be capped at 3.00% per annum and collared at 0.00% per annum.

The lease will remain in the name of Capita Business Services Limited but the Company has secured a new guarantee from its parent company Capita plc for the duration of the term.

The transaction increases the weighted average unexpired lease term (WAULT) to lease breaks from 4.88 years to 7.63 years over the whole of the Company’s portfolio. The WAULT to lease expiries increases from 6.36 years to 9.12 years. Further, the transaction will have a positive impact on the NAV of the Company, increasing it by £1.3m.

Commenting on the transaction, Calum Bruce, Director – Investment at Ediston Properties Limited (the Company’s Investment Adviser), said: “This transaction has secured Capita as a tenant for 25 years, which reaffirms their commitment to the property. The asset now provides a long term secure income stream for the Company which will benefit from annual index linked rental uplifts.”