Significant New Letting – Increases Occupancy of Recently Acquired Portfolio to c. 89%
PRESS RELEASE: Glasgow, 30 May 2017 – Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces that London & Scottish Property, property and asset manager to Regional REIT Limited, has secured a new letting of the whole of Brennan House, Farnborough, to Fluor Limited.
Located at Park West One, Farnborough Business Park, Brennan House is a self-contained Grade A, three storey, air-conditioned office building extending to 30,879 sq. ft. over three floors and with its own car parking facilities. Brennan House has been subject to a very extensive and recently completed refurbishment and is positioned within an attractive landscaped setting.
The building was only recently acquired by Regional REIT, on 24 March 2017, as part of the purchase from The Conygar Investment Company PLC ("Conygar") of a portfolio of UK regional office, industrial and retail & retail distribution investment properties valued at c. £129m. Brennan House represents c. 6 percentage points of the vacant space (by value) of the portfolio of property assets and this letting will increase the occupancy on the acquired portfolio to an average of c. 89% currently.
The deal will see Fluor taking a lease of the entire building on a 7-year lease, subject to break options, at a headline rent of £756,536 pa (£24.50 psf).
Fluor is the UK-based subsidiary of Fluor Corporation, a US Fortune 500 company, one of the world’s leading listed multinational engineering, procurement, construction, maintenance and project management companies.
Stephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Investments, the Asset Manager of Regional REIT, commented: “The successful letting of Brennan House, Farnborough, offers a significant endorsement of our recent portfolio purchase and of the success of our active asset management. The implementation of our business plan for the portfolio, which we acquired only in late March 2017, is well ahead on timing and the rents achieved. The regional office and light industrial property markets continue to offer good opportunities for a recognised player like Regional REIT.”