Bargain chain B&M will expand its presence at Kingston Retail Park in Hull after taking a unit occupied previously by Toys R Us.
Ediston Property Investment Company, which operates the unit, said the agreement would increase the retailer’s presence in the park to 24,225 sq ft, from 10,271 sq ft.
The lease covers 10 years at an annual rent of £302,813. B&M will also receive an incentive of 12 months’ rent free.
As part of the deal, the value chain will give up the lease on its existing unit, which expires in 2021.
Calum Bruce, director of investment at Ediston Properties, said: “Identifying a tenant so soon after the demise of Toys R Us is positive, not just for the asset but for the out-of-town retail market as a whole. It proves that there is good tenant demand for well-located retail parks.
“Agreeing this letting secures a good covenant on a long lease, factors which improve the quality of the company’s income stream. We are already looking for a new tenant to take the smaller unit and are working on a few leads.”
Toys R Us entered administration earlier this year.
