Picton Property Income Ltd said on Friday it has expanded its industrial property portfolio in Gloucester.
The London-based commercial property investor completed the off-market acquisition of Mill Place Trading Estate in Central Gloucester for £10.4 million, with the price reflecting a net initial yield of 6.1%. It was funded using a revolving credit facility, and Picton’s proforma loan-to-value ratio will increase by to 22% post-acquisition.
Located next to Madleaze Trading Estate, which Picton purchased in September, the canalside site totals 19.1 acres, with 365,000 square feet in 38 industrial units.
It currently brings in £680,000 in annual rental income. It has 25 occupiers at a low rental rate of £2.79 per square foot. Picton said 79,000 square feet is currently vacant and will be redeveloped before being leased.
The property investor now has a combined ownership of 29 acres, with 670,000 square feet of warehouse and ancillary accommodation, worth £23.5 million or £35 per square foot.
‘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,’ said Chief Executive Michael Morris.
Picton’s share price was up 0.4% to 101.97 pence each in London on Friday morning.
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