Tenant downsizing an opportunity, says Ediston

The London-listed firm said Weightmans currently occupied 37,395 square feet across three floors, on three leases which were due to expire in July 2019.

It said the current annual rent was £606,452.

Ediston confirmed it signed an agreement to restructure the terms of Weightmans' occupation of the property, effective from 1 August.

It explained that, under the agreement, Weightmans would take a new 10-year lease with a five-year break option on each of the upper ground and third floors, which extended to a total of 23,187 square feet.

They would pay a rent of £507,430 per annum - a 45.7% increase on the rent currently being paid on those floors - and would receive an incentive of six months rent-free.

Under the agreement, the tenant would surrender the lease on the first floor, which extended to 14,208 square feet, and Ediston said it would refurbish and market that floor to let.

It anticipated that the floor would achieve a rental level in excess of the current passing rent, which could result in an overall increase in net income from the property of around £220,000 per annum.

“Weightmans has been a tenant in the building for over eight years, so we are pleased to have been able to structure a deal which extends their stay,” said Ediston Properties director of investment Calum Bruce.

“The increase in the rental tone shows that there will always be demand for good quality offices in the right locations.”

Bruce said Ediston had long considered void space to be an opportunity, pointing to the soon-to-be-vacant first floor as an example.

“We are confident that with the right refurbishment we will identify a tenant to lease this space and secure additional income for the company.”