King Edward Court remained fully let throughout 2010 with the exception of a small office suite. Since the year end we have been able to negotiate the surrender of leases on two shops where we had less vibrant retailers. The first of these was originally let to a musical instrument retailer at £72,000 per annum. This unit has now been re-let to Prêt à Manger for a new café concept at £85,000 per annum. This not only brings a more exciting retailer to the centre, but also a rental level equating to a Zone A level of £116 per sq.ft., a record for this part of the centre.
The second unit had previously been let to a discount book retailer. The unit is now under offer to an established, upmarket gift retailer at an increased rent. The new lease should complete soon.
In September 2010, Boots the Chemist vacated its 14,000 sq. ft. Shop, having taken a lease on the much larger, former Woolworths store outside our ownership. The lease on our shop continued until 2015. We have, since the year end, accepted a surrender of this lease in exchange for a payment of £1.025 million, equivalent to over two and a half year’s rent. We intend to divide this unit into three smaller units and incorporate the vacant first fl oor offices.
We have seen a high level of retailer interest in these units and already have offers on all of them from exciting retailers. I look forward to announcing the lettings in due course. We have made a planning application to change the shop fronts on these units and, subject to obtaining this consent, anticipate that the development will be let and completed during 2011.
