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Circle Property signs 15-year lease with BE Offices for its Somerset House redevelopment in Birmingham

The AIM-listed firm said the agreement follows the recent letting of both ground floor restaurant units and means the property is now at 100% occupancy
John Arnold, Circle Property CEO
John Arnold, Circle Property's CEO said: “Somerset House is a perfect case study for Circle’s strategy demonstrating our ability to generate income and value"

Circle Property PLC (LON:CRC)  has agreed a new 15-year lease with BE Offices at its recently completed Somerset House redevelopment on Temple Street in Birmingham city centre.

The AIM-listed firm said the agreement follows the recent letting of both ground floor restaurant units and means the property is now at 100% occupancy, five months after the redevelopment completed.

READ: Circle Property buoyed by demand for good commercial property

The company said BE Offices, UK’s leading shared and flexible office space provider, has agreed to take the entire 36,300sq feet of office space over six floors at the property.

Circle Property added that this new letting increases its contracted rent roll by 11.6% and means that the property will generate a total rental income of £1.2mln per annum, with upwards only five-year rent reviews.   

Circle Property acquired Somerset House in 2016 and undertook a full refurbishment of the property, which led to company agreeing long leases with popular Latin American restaurant chain, Las Iguanus, and with Camerons Brewery's 'The Head of Steam' pub concept.

John Arnold, CEO of Circle Property, commented: “Our strategy was to create a high-quality product, well placed to capitalise on tenant demand in Birmingham, while adding much needed leisure usage to Temple Street.”

He added: “Somerset House is a perfect case study for Circle’s strategy, demonstrating our ability to generate income and value by identifying compelling investment opportunities in strong regional locations.”

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June 28 2018
"This has been another successful year in which the group has achieved a 25% uplift in NAV, significant lettings successes across recently completed developments leading to a 21.49% increase in contracted rent and a strong performance across our key metrics," said the CEO, John Arnold.

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