Redefine signs up new Derby tenant for 50% rent boost

Redefine International has signed a 15-year lease with TK Maxx for a property in Derby for 50% above its estimated retail value as it spends £2.2m on redeveloping the store space.

The FTSE 250 income-focused UK real estate investment trust will begin working on the new 22,000 square feet store in the city's central Albion Street later this month, where it also owns 10 other retail units.

The shop is scheduled to open by late 2018 with an agreed rent of £0.2m.

"We acquired our units on Albion Street as part of the AUK transaction last year and it is a site that we identified as having significant asset management potential in a high footfall location in Derby city centre, which is the target of significant investment by the local authority," said Adrian Horsburgh, property director at Redefine International.

"This letting to TK Maxx, a high-profile brand with a strong covenant, is in line with our strategy to target income-led asset management opportunities as we continue with our objective of becoming the UK's leading income-focused REIT."