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Picton Property Income Ltd - Picton acquires mixed-use property in Cheltenham

·2-min read

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