Schroder UK Real Estate Fund has agreed three lettings at the Hall Road Retail Park in Norwich for a total of 63,000 sq ft. The deals see Homebase significantly reduce its footprint at the park.
Homebase previously occupied 80,000 sq ft, and has been paying reduced rent since its 2018 CVA. The DIY retailer has now signed a new 10-year lease on a reconfigured 30,000 sq ft unit, due to open later this month.
Iceland has signed a 10-year lease for 13,000 sq ft, while Home Bargains has taken 20,000 sq ft on a 15-year lease. Both stores are expected to open by the end of the year. Of the space Homebase previously occupied, 16,500 sq ft remains available.
Other tenants at the retail park include Aldi, Pets at Home, Aldis and Hughes.
Tom Woolven, investment manager at the fund, said: “By downsizing Homebase’s space at the retail park, we have created units to attract two new occupiers to the park, whilst retaining the Homebase brand on a new lease that is better aligned to their current requirements.
“As landlords, we seek to take a proactive approach to review our assets and ensure they provide the accommodation that modern tenants need, thus keeping ahead of the curve to increase our rental income and ensuring we can continue to aim to deliver investor returns ahead of our benchmark.”
Edgerley Simpson Howe represented the fund.
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