Wichford, the listed UK property company focused on buildings occupied by government bodies, has announced the completion of an agreement on new leasing conditions for 16 of its buildings. The agreement, first announced on 30 May, was reached with Land Securities Trillium, which acted on behalf of the tenants.
Wichford, the listed UK property company focused on buildings occupied by government bodies, has announced the completion of an agreement on new leasing conditions for 16 of its buildings. The agreement, first announced on 30 May, was reached with Land Securities Trillium, which acted on behalf of the tenants.
The leases on the 16 properties have been extended to 2023 with a break clause in Trillium's favour in March 2018. In 15 of the properties the open market rent reviews clauses are being removed and replaced with a clause linked to UK Consumer Price inflation. This takes the level of indexation within Wichford's rental income to just over 55%. Following completion seven properties have been transferred from the company's Active Portfolio to
the Core Portfolio.
Philippe de Nicolay, Chairman of Wichford Plc commented: 'The effect of this transaction is to secure long-term, index-linked income, lengthen the average unexpired lease, and increase the overall value of the Wichford portfolio.'
Wichford owned 78 properties in the UK, France and Germany totalling 322,000 m2, valued by external valuers at £673mln, at end-September 2007. A quarter of the portfolio comprises public sector rented properties in Germany and France.
