Single Let Modern Office HQ

Newport is located midway between Cardiff and Bristol and acts as the gateway from England into Wales. The property is let on effective FRI terms for a term of 20-years from 2014 to 2034. There is a tenant only break option in 2030, exercisable on 12 months’ written notice. This provides a WAULT of 11.0 years to expiry and 7.0 years to break. The rent is subject to 5 yearly CPI- linked reviews, subject to a cap and collar of 2% to 4% per annum. The next review is due on 5th June 2024. The current passing rent is a highly reversionary £1,384,775.04 per annum (£16.72 per sq ft). At the upcoming review on 5th June 2024, there will be a minimum uplift to £1,528,792 per annum (£18.45 per sq ft). The vendor will provide a top up to this level from the current passing rent. However, based upon CPI growth to date and forecast future CPI growth until 5th June 2024, the rent is likely to be settled at the maximum level of £1,685,271 per annum (£20.34 per sq ft), providing a further c100bps of running yield to the purchaser.