Elite Commercial Reit posts rent escalation updates for assets occupied by UK government
THE manager of Elite Commercial Reit announced rent escalation updates for assets occupied by the UK government’s Department for Work and Pensions (DWP) and Ministry of Defence (MOD).
It said on Thursday (Apr 20) that there were a total of 136 assets with a rent review on Apr 1.
Of these, 134 will have their escalation pegged to the UK consumer price index (CPI). The DWP occupies 133 of these assets, while the MOD occupies one.
Out of the 133 DWP-occupied assets, 11 are subject to a rent reduction.
The remaining two assets, from the total of 136, are occupied by DWP and have a rent review based on open-market rent.
The UK-focused real estate investment trust (Reit) expects seven assets to have a rent escalation of 21.1 per cent and 127 assets to have a rent escalation of 15.3 per cent, based on the UK CPI and the assets’ respective lease agreements.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
This translates to a revised rent of £3.2 million (S$5.3 million) per annum for the seven assets.
Of the 127 assets, 116 of them will have a revised rent of £31.2 million per annum, while the remaining 11 that are subject to rent reductions will have a revised rent of £1.5 million per annum.
The revised rent will be effective from Apr 1.
The Reit’s manager expects legal documentation of the revised rent for each property to be completed by the second quarter of 2023.
Units of Elite Commercial Reit were trading £0.015 or 3.7 per cent higher at £0.425 as at 10.27 am on Thursday.
Copyright SPH Media. All rights reserved.
