Picton Property Income has completed an agreement to Lease with Lidl on its former Homebase unit at Parc Tawe North, Swansea. It will move Lidl from its existing premises on the retail park, making it the anchor occupier, alongside JD Sports, Pets at Home, Home Bargains and Poundstretcher.
Lidl currently occupies a 10,000 sq ft unit on a lease expiring in 2023. It will increase its footprint by 255%, taking the entire 35,500 sq ft previously occupied by Homebase. Lidl will continue to trade from its existing unit, paying £0.14 million per annum until the enabling works and fit out have been completed, which is expected to be in the second quarter of 2019.
Homebase, which undertook a Company Voluntary Arrangement (CVA) in August 2018, had proposed to reduce the passing rent by 90% if they remained in occupation. Rather than agree the proposed terms, Picton decided to serve notice to secure vacant possession of the unit. At the same time, Picton negotiated the release of a restrictive covenant to allow additional food retailing on the park to facilitate this letting transaction.
With the Lidl agreement completed, Picton will pursue the second stage of its strategy at Parc Tawe North by focusing on letting the 15,000 sq ft of space that became vacant following the insolvency of Poundworld in 2018 and, when vacated, the former Lidl unit.
Chief executive of Picton, Michael Morris commented: "By executing a bold strategy of securing vacant possession, releasing a restrictive covenant and working with one of our existing occupiers, we have been able to secure a high quality anchor for the largest unit on the park on a long lease."