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(Alliance News) - Picton Property Income Ltd on Friday said it has completed the sale of a distribution warehouse in Lutterworth, Leicestershire for a total of GBP15.9 million.
The commercial property investor said that in 2019, it restructured the lease of the 160,000 square feet Magna Park site, securing a further three-year term until a tenant break option in December 2022. As part of that transaction, the December 2019 rent review was settled, securing a 11% uplift to GBP1 million annually.
The sale price reflects a net initial yield of 5.8% and 4% uplift to the September valuation, Picton said.
"The disposal crystallises the upside created from this asset management initiative during the summer. The proceeds will be recycled in the short term to repay our revolving credit facilities and provide further funding for planned asset enhancement projects," said Chief Executive Michael Morris.
Shares in the investment trust were up 0.6% at 101.80 pence each on Friday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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