London landlord GPE lets Superdry flagship to new fashion tenant, rent collection improves
Major central London landlord Great Portland Estates (GPE) issued a trading update on Thursday and said that “momentum is building”. It also confirmed that Superdry is exiting its Regent Street flagship.
The flagship, at 103/113 Regent Street had an annual rent of £4.3 million, which is clearly a massive payout for the brand that has faced major challenges in recent years on top of the enforced closure of the store for long periods due to lockdowns.
GPE said it accepted the surrender of Superdry's lease and is “replacing them with a global fashion brand”, although it didn’t say who would step in. Recent reports have suggested that Superdry will retain a presence in central London and is currently looking for a new home. There will clearly be no shortage of properties available with a large number of stores having been vacated since the pandemic began.
Back with GPE, its CEO Tony Courtauld said it has seen an “acceleration in enquiries in the first quarter of the year [that] translated into healthy leasing activity”.
It has signed up tenants for £12.7 million worth of new annual rent, including £8 million of retail space. The group's rent roll has increased by 2.2% to £97.3 million and the vacancy rate has decreased to 11.8% from 13.2% at the end of March.
The firm has also managed to improve its rent collection compared to all four previous quarters. Some 86% of June rent has been collected to date, including amounts covered by rent deposits, or 84% excluding deposits. But while it has collected 93% from office units, it has only achieved 58% from the retail, hospitality and leisure sectors.
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