A new rental record is being claimed on Edinburgh's Princes Street. Britannia Investment Managers, owners of a shop unit at 76/77 Princes Street, has taken a surrender of the lease from Internacionale to create two new units. One unit has been let to Goldsmiths at a rental of #215,000 per annum, reflecting #224 per sq ft Zone A. Zone A is the high trading 30ft in from the shop door.
''This sets a new rental record and illustrates the strength of Princes Street,'' says Graham Hamilton, retail director of joint letting agents Chesterton. ''There is still a shortage of units for lease and I'm confident that this deal sets the tone for rents on Princes Street for some time to come.''
The other new unit was leased to the Baggage Company at #270,000 per annum, reflecting #193 per sq ft Zone A. Winton Faith acted as joint letting agents with Chesterton on the two deals.
The shortage of units in major town centre pitches is being mirrored in key out of town schemes, creating the same rental spiral.
At Phase 2 of the Pentland Retail Park at Straiton, on the outskirts of Edinburgh, Sterling Furniture Group has just surrendered its lease on a 12,000 sq ft unit in return for a #415,000 premium from landlords Scottish Metropolitan.
The unit has been re-let to Miller Brothers (Electrical) at a rent of #192,000, equivalent to #16 per sq ft - a major improvement on the #9.50 per sq ft being paid by Sterling when Scottish Metropolitan purchased it in spring 1996.
Scott Cairns, managing director of Scottish Metropolitan, said: ''We have also lodged a planning application for a further 10,000 sq ft on the second phase of the park. Although no formal marketing has commenced, we have already been approached by several retailers seeking representation.'' Scottish Metropolitan was represented by Peter Campbell & Co in the transaction.
Further west, the sale of a 22,500 sq ft retail warehouse at Birkenshaw Retail Park in Uddingston attracted intense bidding. Let to Currys, the unit was sold by Miller Developments and Catren Properties to clients of SLC Management. The rental is #11.50 per sq ft on a new 25-year lease, reflecting a net initial yield of around 6.7%.
A total of five bids were received at a closing date. Peter Bell, head of property at purchasers SLC Asset Management, says that one attraction was the #11.50 per sq ft rental which is due for review soon. ''Rents approaching #14 per sq ft are being anticipated on other developments on the park,'' he said.
Meanwhile, as the appetite of the food giants for new outlets shows no sign of abating, a new retail scheme in Irvine will create a 64,000 sq ft Tesco Superstore and filling station.
Dawn Developments in Ayr has acquired the former Caberboard factory site in Irvine. The buildings are now being demolished to make way for the new food store and a 110,000 sq ft extension to the Riverway Retail Park.
The #30m development will include the relocation of the existing Homebase store and the creation of a further seven retail units, plus a fast-food restaurant.
A new access road from the Merryvale Roundabout through the 17-acre development site will provide a second main access to the town centre, alleviating pressure on the existing roundabouts and the one-way system.
The road will be completed this summer and the first shop units will be open for the autumn.
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