Regional REIT (LSE:RGL), the regional office specialist, said it has signed a 20-year lease on 146,262 square feet of previously vacant space across two Nottingham offices, securing a headline rent of £1.07m per annum.
The tenant, a specialist electronics manufacturer, has taken One and Two Newstead Court on Sherwood Business Park in an unrefurbished condition and will carry out improvement works at a cost of approximately £5m.
The deal eliminates void costs of roughly £700,000 per year that Regional REIT had been absorbing on the two properties.
The lease includes five-yearly RPI rent reviews and break options at years 10 and 15.
Stephen Inglis, CEO of ESR Europe LSPIM, the group's investment adviser, said the letting reflects demand from occupiers "unable to identify suitable ready-to-occupy accommodation" in regional markets where new supply is "extremely limited," and added that he expects the trend to continue as available stock contracts further
