Redefine International, the FTSE 250 income-focused UK REIT, announces that it has signed a 15- year lease with TK Maxx for a new 22,000 ft² store at Albion Street in Derby.
The Company will commence a redevelopment of 9-11 Albion Street in late spring 2017 to combine the basement, ground, first and second floors of the three existing units into a single, modern space to accommodate TK Maxx. The new store is scheduled to open by late 2018, once internal fittings have been installed, creating 35 new jobs and improving the retail pitch for the city. The agreed rent of c. €0.24m (£0.2m) is 50 per cent. ahead of the February 2017 ERV. Capital expenditure to reconfigure the space is anticipated to be c. €2.6m (£2.2m).
Redefine International owns 10 adjoining retail units on Albion Street, which is a key artery in Derby’s main retail centre linking the city’s Intu shopping centre to Primark and the historic Old Town. The area is the subject of major redesign and refurbishment plans by Derby City Council, which will transform the area into a family-focused shopping destination.
Adrian Horsburgh, Property Director at Redefine International, commented: "We acquired our units on Albion Street as part of the AUK transaction last year and it is a site that we identified as having significant asset management potential in a high footfall location in Derby city centre, which is the target of significant investment by the local authority. This letting to TK Maxx, a high-profile brand with a strong covenant, is in line with our strategy to target income-led asset management opportunities as we continue with our objective of becoming the UK’s leading income-focused REIT."
