UPDATE 1-Brixton grows annual rents by $1.65 mln in June

Tue Jun 30, 2009 2:30am EDT

* New lettings take 2009 letting total to 450,000 sq ft

* Brixton annual rental income up circa 4.4 mln stg this yr

(adds detail)

LONDON, June 30 (Reuters) - Embattled industrial property landlord Brixton BXTN.L said on Tuesday it had added almost 1 million pounds ($1.65 million) to its annualised rental income after letting 104,000 square feet in nine new lettings in June.

The indebted UK real estate investment trust, which is currently subject to a takeover approach from rival investor Segro (SGRO.L), said it has secured tenants for nearly 450,000 square feet of space since the start of 2009, creating nearly 4.4 million pounds of new annualised rental income.

This compares favourably with the second half of 2008 when the corresponding figures were 310,000 square feet and 2.8 million pounds.

The June lettings include Norbert Dentressangle Transport Services Limited, which has agreed to rent Brixton's 39,461 square foot Green Lane Cargo Centre at Fairway Trading Estate, near London's Heathrow Airport.

The company has signed a 5-year lease, the terms of which are subject to a confidentiality agreement.

In addition, Brixton has signed up Sainsbury's Supermarkets Limited to take space at Hampshire House at Feltham Corporate Centre, also near Heathrow.

The new 15-year lease will commence on 25 December 2011 and a rent-free period of 18 months has been granted. The current passing rent is 325,000 pounds per annum, which equates to 9.97 pounds per square foot.

(Reporting by Sinead Cruise)

(See www.reutersrealestate.com for the global service for real estate professionals from Reuters)

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