The terms of these leases remain intact except for the removal of the lease break clause, and they continue to enjoy the built-in inflation-linked rental escalation to start in April 2023. The rental uplift is based on the UK Consumer Price Index, subject to an annual minimum increase of 1.0% and a maximum of 5.0% on an annual compounding basis from April 1, 2018 to March 31, 2023.
So far, the manager has received a break option notice for one out of the remaining nine assets occupied by DWP with a March 2023 lease break clause. The manager will continue to engage DWP on the remaining eight assets with a March 2023 lease break clause and will update the market in due course. The WALE of Elite Commercial REIT’s portfolio will remain stable at 6.0 years following this latest update.
