Lease Negotiations at Curno

AXA Property Trust Limited
(a closed-ended investment company incorporated with limited liability under the laws of Guernsey with registered number 43007)
LEI Number: 213800AF85VEZMDMF931
(The “Company”)

LEASE NEGOTIATIONS AT CURNO CONCLUDED

The Board of Directors are pleased to confirm that lease negotiations have concluded in respect of the Company’s last remaining asset at Curno, Italy. These negotiations arose in response to the previously-announced and significant deterioration in the tenant’s operating results from the property.

After considering potential alternative options for the asset, the Manager entered into negotiations in early 2018 with the aim of negotiating overall terms that would improve liquidity and maximise potential pricing.

Summary details of the agreed lease terms, which include a material increase in the fixed term, are as follows:

Term

15 years fixed, from 1 January 2019 with an automatic nine-year extension unless cancelled by the tenant with a minimum 12-month notice period.

Base Rent

Year 1 – EUR 800,000, subject to a rent-free incentive equivalent to five months’ rent.

Year 2 (i.e. from January 2020) – EUR 830,000, and thereafter to be indexed to 100% of the ISTAT Consumer Index on an upwards-only basis.

As part of the overall negotiation package the tenant also receives a fixed contribution of approximately EUR 330,000. 

Variable Rent

There will be an incremental rent of between EUR 1.50 and EUR 2.50 per ticket sold above a minimum threshold of 350,000 tickets per year.

Tenant Guarantee

There will be an increased guarantee package as security against the tenant’s obligations throughout the term of the lease.

The Board consider that the revised lease terms provide the property with significant income stability and improved prospects for liquidity and a future sale.

Further announcements regarding the disposal strategy for the asset will be made in due course.

Company website:retail.axa-im.co.uk/axa-property-trust

All Enquiries:
 
Investment Manager 
AXA Investment Managers UK Limited
Broker Services
7 Newgate Street
London EC1A 7NX
United Kingdom

Broker
Stifel Nicolaus Europe Limited
150 Cheapside
London EC2V 6ET
United Kingdom
Tel: [phone]
 
Company Secretary
Northern Trust International Fund
Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL
Channel Islands