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London, 28th May, 2013 – The Aviva Investors Pensions Ltd - Property Fund (AIPL) has completed the letting of unit 1, Gemini Business Park, Beckton to The Royal Mail who have taken a 15-year lease of the 111,000 sq ft unit.
The property was acquired in April 2011 for £6.7m. At the time of purchase, the unit was let to the London Organising Committee of the Olympic Games (“LOCOG”) on a lease until December 2012. On expiry of the LOCOG lease, the strategy was to refurbish, market and re-let the unit to take advantage of forecast tenant demand for modern, well-specified distribution warehouse accommodation within the M25. The building was vacant for less than 6 months.
By refurbishing the unit to create a grade A specified property, the team have been able to maximise rental income with The Royal Mail's rent being a 33% increase on the rent payable by LOCOG. In addition, the building specification and quality has enabled the fund to secure a 15 year lease.
Philip Butler at Aviva Investors commented “that the minimal void period was particularly beneficial to the owning Fund, and demonstrated both the high levels of specification offered by the building, and the shortage of supply of similar space within the M25”.
Aviva Investors were advised by Jones Lang LaSalle, Glenny and Frankis Porter. Royal Mail was advised by Capita Symonds.
Chris Knight, Director in Industrial & Logistics at Jones Lang LaSalle said ““The letting of Gemini1 upon a 15 year lease to Royal Mail justifies AVIVA’s acquisition of the unit two years ago. The absence of any prime built stock within the M25 on the east side of the London, coupled with an excellent and rapid refurbishment led to immediate interest from Royal Mail for their Parcelforce business and underlines the continued growth within the Logistics sector from parcel delivery providers."
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