Repositioning our asset to meet occupier needs
Lyon Business Park is a prominent, well located multi-let distribution and warehouse scheme in east London, adjacent to the A13 and close to the A406 North Circular Road and equidistant from central London and the M25. It comprises 12 units purpose built in the early 1990s, totalling 99,450 sq ft. Two larger distribution units represent 72% of the floor space, with ten small business units comprising the remainder.
Following a surrender of one of the distribution units, where the occupier paid a premium of £0.3 million plus dilapidations, we refurbished the unit during the year and leased it to an airline catering company servicing London City Airport on a ten year lease, with a break, at a rent of £0.25 million per annum with three months rent free. This transaction was 17% ahead of March 2016 ERV and the previous passing rent.
We worked with another occupier to expand into an adjacent unit, in line with the Picton Promise to help occupiers to ‘right size’ their business space. These lettings and two further lease renewals means the estate is fully let and the income is currently 107% higher than on 31 March 2016, with the valuation having increased by 29% over the same period.
Key property details