Picton Property acquires Lincolnshire warehouse

7th Apr 2014 09:12

Picton Property, an income-focused investment company, has acquired a 335,000 square foot East Midlands distribution warehouse in Lincolnshire.The firm paid £11.48m for the property, the income of which is secured against The Random House Group for just under nine years and currently produces an annual rent of £1m, equivalent to almost £3 per square foot. The purchase price represents a net initial yield of 8.2% and capital value of £34 per square foot.Chief Executive Michael Morris said: "This acquisition complements recent trading activity in the portfolio. It provides secure income at an attractive yield, with a low entry point in terms of both rental level and an overall capital value per square foot which is significantly below the cost of construction. "Following this transaction, we have now deployed all of the capital raised from both our recent share placings and disposal programme on an earnings accretive basis." NR