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(Alliance News) - 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 GBP10.4 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 GBP680,000 in annual rental income. It has 25 occupiers at a low rental rate of GBP2.79 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 GBP23.5 million or GBP35 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.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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