Picton has leased a 35,500 sq ft former Homebase store in Swansea to supermarket operator Lidl.
Following enabling works by Picton, Lidl will take a 20-year lease, with a break after 15 years, at an annual rent of £390,000.
Homebase, which undertook a Company Voluntary Arrangement (CVA) in August 2018, had proposed to reduce the passing rent by 90% if it remained in occupation.
Rather than agree the proposed terms, Picton decided to serve notice to secure vacant possession of the unit.
At the same time, Picton negotiated the release of a restrictive covenant to allow additional food retailing on the park to facilitate this letting transaction.
Picton will now focus on letting the 15,000 sq ft of space that became vacant following the insolvency of Poundworld in 2018 and, when vacated, the former Lidl unit.
Michael Morris, chief executive of Picton, commented: “By executing a bold strategy of securing vacant possession, releasing a restrictive covenant and working with one of our existing occupiers, we have been able to secure a high-quality anchor for the largest unit on the park on a long lease.”
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