Picton Prop Inc Ltd Picton acquires mixed-use property in Cheltenham
31 August 2022 - 4:00PM
UK Regulatory
TIDMPCTN
31 August 2022
PICTON PROPERTY INCOME LIMITED
("Picton", the "Company" or the "Group")
LEI: 213800RYE59K9CKR4497
Picton acquires mixed-use property in Cheltenham
Picton has completed the freehold acquisition of 109-117 High Street,
Cheltenham for £5.3 million.
The mixed-use property comprises 7,700 sq. ft of ground floor retail space with
11,450 sq. ft of office space over two upper floors, and is located in
Cheltenham's pedestrianised town centre, adjacent to John Lewis.
Comprehensively refurbished in 2020, the property has strong net zero
credentials including EPC ratings of B on the office and retail elements. It
is leased to four occupiers including Tesco, Just Go Holidays and Barnardo's
with an average lease length of 12 years to expiry and eight years to break.
The current annual rental income is £0.4 million, equating to £21 per sq. ft,
with the majority of leases containing fixed rental uplifts that will increase
income to £0.5 million per annum by 2026.
The purchase price reflects a net initial yield of 7.2%, rising to 9.0 % by
2026. The low capital value of £277 per sq ft is below its estimated
replacement cost.
The Company has funded the acquisition through the use of its revolving credit
facilities.
Michael Morris, Chief Executive of Picton, commented:
"This is our second, mixed use acquisition this year. It is a quality, future
proofed building, that has recently been leased and after significant
expenditure. The income profile and fixed rental uplifts will further improve
our earnings."
For further information,
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
james.verstringhe@tavistock.co.uk
Note to Editors
Picton, established in 2005, is a UK REIT. It owns and actively manages a £879
million diversified UK commercial property portfolio, invested across 48 assets
and with around 400 occupiers (as at 30 June 2022).
Through an occupier focused, opportunity led approach to asset management,
Picton aims to be one of the consistently best performing diversified UK
focused property companies listed on the main market of the London Stock
Exchange.
For more information please visit: www.picton.co.uk
ENDS
END
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