McKay Securities PLC PRE-LETS SECURED AT THE MILLE, BRENTFORD (6226Y)
07 December 2017 - 6:00PM
UK Regulatory
TIDMMCKS
RNS Number : 6226Y
McKay Securities PLC
07 December 2017
McKAY SECURITIES PLC ("the Group" or "McKay")
CONVERSION OF LEGACY MANAGEMENT AGREEMENT WITH PRE-LETS AT THE
MILLE, BRENTFORD
McKay Securities PLC, the only UK REIT specialising exclusively
in the London and South East office and industrial markets, has
completed agreements to pre-let the first two floors of its
high-profile west London asset, The Mille, to leading serviced
office space provider, UBCUK Ltd ("UBC").
On completion of refurbishment work by McKay, UBC will enter
into 10 year leases on the 1(st) and 2(nd) floors, totalling 16,624
sq ft, at a combined contracted rent of GBP332,480 p.a.
McKay acquired the West London landmark building in 2014. At
that time, serviced office provider UBC occupied the 2(nd) and
3(rd) floors under profit share management agreements. Since then,
McKay has carried out a rolling refurbishment programme including
the upgrade of reception, common parts and landscaping as well as
any vacated office accommodation. Given the popularity of the
building and the improvement in its management, McKay has retained
UBC on conventional leases in place of the expiring legacy
profit-sharing agreements, which generated limited rental income.
The agreed rent of GBP332,480 p.a. equates to GBP20.00 psf and is
subject to a minimum uplift at first review to the higher of
compounded RPI or GBP25.00 psf. This compares with a blended ERV of
the two floors of GBP21.50 psf.
The building, which totals 96,650 sq ft of office floor space
over 12 floors, is located in a highly prominent position on the
south side of the elevated section of the M4 motorway. It is
adjacent to the GlaxoSmithKline headquarters and is opposite the
University of West London.
The letting to UBC is a further sign of the continuing and
growing appetite by businesses for flexible work space. Earlier in
the year, McKay let its entire 40,000 sq ft scheme at 9 Greyfriars
Road in Reading to co-working group, Spaces.
Simon Perkins, CEO at McKay, commented:
Retention of UBC on conventional terms provides a strong
endorsement of the occupier-focused business space we have created
at The Mille, and that we continue to deliver across our growing
London and South East office portfolio.
By successfully transforming the historic profit-sharing
serviced office management agreement into two, 10 year,
institutional leases at market rents, we have retained a
complimentary operator, while adding value through refurbishment
and de-risking 17% of the building.
Richard Johnson, UK Managing Director, UBC said:
We are delighted to have secured a long-term lease at The Mille
for a further 10 year term; this commitment represents a
significant investment to UBC and the building is an important part
of the UBC serviced office portfolio. Our Brentford flexible
workspace offering has always been in demand, but recent
improvements in the building have certainly helped raise our
profile here and we are very much looking forward to delivering our
brand new premium quality space early in the new year.
- ENDS -
Date: 7(th) December 2017
For further information
please contact:
McKay Securities PLC FTI Consulting
Simon Perkins, CEO Dido Laurimore, Tom Gough, Ellie
Sweeney
Giles Salmon, CFO 020 3727 1000
01189 502333
About McKay Securities
McKay Securities PLC is a commercial property investment company
with Real Estate Investment Trust (REIT) status, listed on the main
market of the London Stock Exchange. It specialises in the
development and refurbishment of good quality office and industrial
buildings within established and proven markets of central London
and South East England. The portfolio, as at September 2017, was
valued at over GBP450 million, comprising 36 properties in strong
and established areas which deliver diversity in terms of both
sector and location.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBIBDDDGGBGRL
(END) Dow Jones Newswires
December 07, 2017 02:00 ET (07:00 GMT)
Mckay Securities (LSE:MCKS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mckay Securities (LSE:MCKS)
Historical Stock Chart
From Apr 2023 to Apr 2024