Property investment and asset management company Addington Capital has let over 26,100 sq. ft of office space to the Department of Work and Pensions (DWP) in three of their properties.
The DWP has taken a new five-year lease and has expanded its occupancy to take 7,900 sq. ft, the whole of the third floor, of Carew House (pictured) in Surrey at a rent of £20.50 psf. The DWP had previously been a tenant in the building.
In addition, Addington has let 8,500 sq. ft in Harvey Centre, Harlow and 9,700 sq. ft in Charter Walk Shopping Centre in Burnley, also to the DWP.
Both new leases are for a five-year term. All three of the offices will be used as job centres.
The DWP is currently opening job centres across the UK to deal with the anticipated growth of the number of unemployed caused by the pandemic. According to the Chancellor’s recent Budget, there have been 700,000 job losses in the UK since March 2020. Numbers are expected to rise even further with the end of the furlough scheme in September.
Philip Symonds, partner at Addington Capital said, “We welcome the flexibility given by the new class E planning use which have enabled us to re-purpose some of the empty space in two of our shopping centres for office use’.
“Letting to a government agency provides a strong covenant at a time when many in the retail markets are struggling. We are carefully looking at our other standing assets to see where we can take advantage of the less restrictive planning regime to enhance net income as well as capital values.”
This post has originally been featured in Property Wire.