Schroders Regional Office Fund illustrates continuing demand in stronger regional markets by completing key lettings totalling £1.2 million per annum

The Regional Office Fund, advised and managed by Schroder Real Estate, has completed six key lettings and re-gears across its portfolio totalling 52,453 sq ft or £1.2 million p.a. of rent.

At Delta House in Glasgow the Scottish Ministers have signed a 10-year extension to their existing occupation over five floors totalling 16,055 sq ft. The deal sees the rent move to £337,155 per annum, representing a 10% increase on current passing rent.

At The Senate in Exeter, the Valuation Office Agency has taken 4,701 sq ft on a new 10-year lease at £110,474 per annum or £23.50 per sq ft. The letting achieves a new headline rent for the building and follows the recent successful re-gear with Refinitiv on the second floor across 9,302 sq ft at £190,691 per annum; a deal completed in July 2020. The two deals see the net income increase by 15%.

At Altius House in Milton Keynes, DoTerra has taken 9,655 sq ft on the second floor on a 10-year lease at £222,065 sq ft or £23 per sq ft. The deal represents a new headline rent for the building. Furthermore, Robert Walters has committed to a further five-year term on their existing part first floor suite with the rent moving on to £69,237 per annum, a 27% increase on their passing.

Lastly at Centrium 4, St Albans, Sketchers, the US footwear company, has signed a new seven-year lease extension on the ground and third floor totalling 9,443 sq ft. The rent totals £283,290 per annum or £30 per sq ft.

Tom Newman, Fund Manager at Schroder Real Estate commented:

“We are delighted to see commitment from a number of occupiers across the portfolio, particularly against a backdrop of speculation regarding the future of the office.

“The deals represent long-term occupier commitments to these high quality office buildings and follows refurbishments delivering high quality space with improved communal areas including enhanced cycle and shower facilities.

“We are actively seeking new investment opportunities in the regional office market with funds in excess of £100 million available for immediate investment.”