Cedarwood bought this 30,000sqft distribution depot on Wade Street, Dundee on the 31st July 2015 for £800,000. The building is let to Menzies Distribution who had a break in their lease in November 2016, with 12 months notice required. Cedarwood negotiated the removal of the break with the tenant,  in return for a rent reduction from £119,100 to £105,000 whilst at the same time extending the unexpired lease term to eleven years with a break at year 6.
Terms were subsequently signed on the basis of the following:-

  • A new rent of £105,000 from 28th November 2015- so 6 years to break.
  • No rent free period
  • The lease to be extended to 11 years with a break at the 6th year on the 28th November 2021, upon 12 months notice.
  • If the tenant doesn’t operate the break they receive 6 months rent free period from 28th November 2021
  • After the rent free the rent rises to £117,500