Picton consolidates Gloucester industrial owner...

04 February 2022

Picton Property Income Limited
(“Picton” or the “Company”)
LEI: 213800RYE59K9CKR4497 

Picton consolidates Gloucester industrial ownership

Picton has completed the off-market acquisition of Mill Place Trading Estate in central Gloucester for £10.4 million.

The estate is located directly adjacent to the Madleaze Trading Estate, which Picton purchased in September 2021.  It comprises 38 industrial units totalling 365,000 sq ft on a 19.1-acre site, located between Bristol Road and the Gloucester and Sharpness canal. Approximately 14 acres is freehold, and the balance is held leasehold. 

The estate is let to 25 occupiers and the total net rental income is £0.68 million per annum, equating to a low rental rate of £2.79 per sq ft overall. 79,000 sq ft of space is currently vacant which will be upgraded or redeveloped prior to leasing. The purchase price reflects a net initial yield of 6.1%.

Picton’s combined ownership now totals over 29 acres, with 670,000 sq ft of warehouse and ancillary accommodation, with a site coverage of 52%. The average rental across leased property is £2.76 per sq ft and there is a further 100,000 sq ft of vacant accommodation that can be upgraded or redeveloped subject to occupational demand. The combined consideration is £23.5 million or £35 per sq ft.

The acquisition was funded using the revolving credit facility and the Company’s proforma LTV will increase to 22% post acquisition (December 2021: 21%).
 

Michael Morris, Chief Executive of Picton, commented:

“We are pleased to have the opportunity to increase our ownership in Gloucester. By combining these two holdings, we have created a larger asset, providing our occupiers with greater choice and the potential to unlock further asset management opportunities.

In the short term, we intend to improve and reposition the estate to broaden its appeal to new and existing occupiers, while also exploring longer term options to realise the full potential of this substantial city centre, canalside location.’

For further information,

Tavistock
Jeremy Carey/James Verstringhe,
020 7920 3150,
[e-mail]

Picton
Michael Morris,
020 7011 9980,
[e-mail]

Note to Editors

Picton, established in 2005, is a UK REIT. It owns and actively manages a £790 million diversified UK commercial property portfolio, invested across 46 assets and with around 350 occupiers (as at 30 December 2021).

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