TIDMCRC

RNS Number : 3596V

Circle Property PLC

08 April 2019

8 April 2019

Circle Property Plc

("Circle" or the "Company")

CIRCLE ACHIEVES 100% OCCUPANCY AT KENTS HILL BUSINESS PARK

Circle Property Plc, a specialist regional UK property investment, development and management company, has made further progress with its active portfolio and asset management having leased the remaining 21,150 sq ft of vacant space at Kents Hill Park in Milton Keynes to Grand Union Housing Group Ltd ("Grand Union Housing"), a leading UK housing association.

Grand Union Housing will take the entire first floor of the refurbished 40,000 sq ft K2 building at Kents Hill Park on a 10 year lease at a headline rent after incentives of GBP17.50 per sq ft or GBP352,625 per annum. The rent exceeds the building's current estimated rental value ("ERV") and increases the rental tone for the business park. There will be a five year rent review in line with the Consumer Price Index, with a minimum compound increase of 1% per annum and maximum increase of 4% per annum. Under the terms of the lease, Grand Union Housing will also have 100 on site parking spaces.

This latest letting follows Circle's lease in November 2018 to Deutsche Telekom subsidiary, T-Systems Ltd, which took 13,500 sq ft of space on the ground floor. The remaining space on the ground floor at K2 is let to Selo Doors, with around nine years remaining on the lease.

Kents Hill Park was acquired by Circle in December 2013 and comprises an office and conference facility, consisting of eight self-contained buildings with a total area of 246,598 sq ft. Six of the buildings are let to Compass Group Holdings Ltd on a 25 year lease, ending 2041, which was regeared in September 2018 to remove Compass's 15 and 20 year break options.

The remaining two buildings were fully refurbished and rebranded as K1 and K2. The 28,000 sq ft K1 building is fully let to three tenants.

John Arnold, CEO of Circle Property Plc, commented: "This latest letting at Kents Hill further underlines our ability to create shareholder value by acquiring and asset managing well located buildings through a range of repurposing, lease regearing and redevelopment initiatives. With both K1 and K2 and Kents Hill now let to a range of clients on long leases we have created an institutional quality asset and we look forward to the full occupancy being reflected in our next portfolio valuation. We will now begin the process of assessing and preparing to bring forward the other value enhancing asset management initiatives we have identified across the park."

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

ENDS

 
 Circle Property Plc                  +44 (0)20 7930 8503 
 John Arnold, CEO 
  Edward Olins, COO 
 
                                      +44 (0) 207 397 
 Cenkos Securities                     8900 
 Azhic Basirov 
  Katy Birkin 
 
  Radnor Capital 
  Iain Daly                             +44 (0) 20 3897 
  Joshua Cryer                          1830 
 FTI Consulting                       +44 (0)20 3727 1000 
 Giles Barrie 
  Richard Sunderland 
  Eve Kirmatzis 
  circleproperty@fticonsulting.com

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END

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