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Circle Property renegotiates lease with major tenant at biggest asset

Chief executive John Arnold said that by successfully renegotiating the lease Circle Property has significantly enhanced the certainty of long-term income
circle property
The company expects the deal to be positive to net asset value

Circle Property PLC (LON:CRC) said it has renegotiated a lease with a major tenant at its biggest asset, Kents Hill Business Park in Milton Keynes.

The tenant, whose name was not disclosed, has agreed to remove two break clauses at year 15 and 20 in its lease, which has 23 years remaining before expiry.

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

"By successfully renegotiating this lease we have significantly enhanced the certainty of long-term income, which is now RPI (retail price index) linked and so creates an institutional quality asset,” said chief executive John Arnold.

"This is a major endorsement for the asset and further validates our active asset management approach. We anticipate this will be positive to NAV (net asset value)."

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