Business
Operating Site Property Leases
Operating Site Property Leases.
About this update from Lords Group Trading Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3523I\n Lords Group Trading PLC\n 11 August 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For immediate release\n \n \n \n \n 11 August 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Lords Group Trading plc\n \n \n ('Lords', the 'Company' or the 'Group')\n \n \n \n \n \n Operating Site Property Leases\n \n \n \n \n \n Lords (AIM:LORD), a leading distributor of building materials in the UK, announces the extension or amendment of existing property leases covering five of the Group's 33 sites (the 'Lease Updates'). The Lease Updates will provide the Group with desirable continuity of tenure at three existing sites and will also see material capital contributions from the property owner to site improvements at two of the sites.\n \n \n \n \n \n Under the Lease Updates, a total of six existing property leases (the 'Leases') between the Group, as lessee, and Gempoint 2000 Limited ('Gempoint'), as lessor, will be extended in term only (the 'Extended Leases'). In addition, to reflect Gempoint's agreement to making capital contributions, at the Group's request, of an aggregate of £1.26 million to site improvements at the Group's Beaconsfield and Huntingdon sites (the 'Site Improvements'), the Group has agreed to an increase in rents at these two locations such that aggregate annual payments across the two Leases will increase from £306,600 to £411,600 with effect from completion of the Site Improvements. The Site Improvements are expected to be completed by no later than June 2022. \n \n \n \n \n \n The rents under the Leases have been arrived at on an arm's length basis having been subject to independent valuations.\n \n \n \n \n \n The Extended Leases, which cover three of the Group's operating sites, will be extended as to their term until 17 August 2026 (four Leases), 24 March 2031 (one Lease) and 31 December 2031 (one Lease) with no increase in aggregate annual rental payments of £575,900 prior to rent reviews for these properties at the original dates of expiry of the Leases between 31 December 2022 and 17 August 2024.\n \n \n \n \n \n The Leases covering the Group's Beaconsfield and Huntingdon sites, which are to benefit from the Site Improvements, will see no extension in term and will continue to expire on 31 December 2036 a...