Howard news

LETTINGS MARKET ACTIVE

May 2008

The Howard Property Group (HPG) of Cambridge reports on some recent new lettings.

Despite the well documented problems in the market, occupier demand within the HPG portfolio remains surprisingly healthy. A number of properties that have been vacant for some time are now being let. By offering more flexible leasing terms, maybe shorter leases or longer rent-free periods - the company is finding occupiers, thus helping cash flow and containing void costs, especially following the Government's decision to introduce empty property rates on industrial properties. Recent lettings for the Group include:

The Werrington Centre, Peterborough. Tesco plc, the supermarket giant has acquired the lease of the former Rainbow foodstore from Anglia Regional Co-operative Society. Tesco's have completed their comprehensive refurbishment of the store and it was officially opened in April following a two month re-fit. The store is at the centre of plans to regenerate shopping at the Centre.

Elizabeth Industrial Estate, Lewisham. Balfour Beatty/Carillion, the international engineering, construction and services groups, have taken two units on the Estate which totals 17,100 sq ft, plus some additional adjacent storage land. The units have been let for an initial term of 5 years. Balfour Beatty recently announced it had been awarded the £363m contract, in joint venture with Carillion, to create the new East London rail line between Dalston Junction and West Croydon by Transport for London (TFL). The project is scheduled for completion in 2010.

Raynham Road Industrial Estate, Bishops Stortford. Enterprise plc, who provide support services for infrastructure maintenance services in the public sector, the utilities industry and for other large organisations, have taken Unit 15-16 totalling 9,806 sq ft on a 3 year deal.

St John's Retail Park in Bedford. DIY chain Homebase, has completed the assignment of Unit 1 on the retail park. Home Retail Group plc, the UK's leading home and general merchandise retailer who owns the Homebase brand, recently completed the purchase of 27 leasehold properties from Focus DIY. The purchase price was stated by the Company to have been £40m. The St John's unit was included in the purchase. The store has been re-fitted with the Homebase branding over recent months in readiness for the peak Spring period. The new store, occupying 36,000 sq ft, has now started trading.

St John's Retail Park in Bedford. Maplin, the electronics retailer, has taken Unit 9 on the park, totalling 4,500 sq ft. The unit was formerly occupied by Choices. The store is currently undergoing a fit out and new fascia and is due for a grand opening in May.

HPG is also developing and investing in a number of existing assets including The Werrington Centre in Peterborough and Raynham Road Industrial Estate. They have recently purchased a 2.35 acre development site on Arlington Business Park in Stevenage which they plan to develop out to a £14m office scheme.