Somerset House Letting

RNS Number : 8827N

Circle Property PLC

14 May 2018

 

14 May 2018

Circle Property Plc

("Circle" or the "Company")

SOMERSET HOUSE LETTING

Circle Property lets 36,300 sq ft to flexible office space provider taking Somerset House, Birmingham, to 100% occupancy

Circle Property Plc, a specialist regional UK property investment, development and management company, announces that it has agreed a new 15 year lease with BE Offices, one of the UK's leading shared and flexible office space providers, at its recently completed Somerset House redevelopment on Temple Street in Birmingham city centre. The agreement follows the recent letting of both ground floor restaurant units and means that the property is now at 100% occupancy, just five months after the redevelopment completed.

BE Offices has agreed to take the entire 36,300 sq ft of office space over six floors at the property.  This new letting increases Circle's contracted rent roll (as at 31 March 2018) by 11.6% and means that the property will generate a total rental income of £1,231,479 per annum (after rent frees and incentives expire), with upwards only five year rent reviews

Circle Property acquired Somerset House in 2016 with the view of undertaking a full refurbishment of the property upon vacant possession, which was due four months after completion. Since then, the Company has implemented a comprehensive refurbishment programme to modernise the building.  This included a successful planning application to change the use of the 10,956 sq ft ground floor to restaurants (A3), which led to Circle agreeing long leases with popular Latin American restaurant chain, Las Iguanus, and with Camerons Brewery's 'The Head of Steam' pub concept.

John Arnold, CEO of Circle Property Plc, commented: "At Somerset House we saw an opportunity to apply our asset management expertise to this very well located but under invested and out-dated office property. Our strategy was to create a high quality product, well placed to capitalise on tenant demand in Birmingham, while adding much needed leisure usage to Temple Street. We acquired, comprehensively redeveloped and fully leased the building in just two years. Somerset House is a perfect case study for Circle's strategy, demonstrating our ability to generate income and value by identifying compelling investment opportunities in strong regional locations."

ENDS

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

Circle Property Plc	[phone]
John Arnold, CEO Edward Olins, COO
Smith & Williamson	[phone]
Azhic Basirov Katy Birkin Radnor Capital Iain Daly Joshua Cryer	[phone]
FTI Consulting	[phone]
Giles Barrie Richard Sunderland Eve Kirmatzis

 

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