Picton Property Income Ltd - London-based real estate investment trust - Buys a mixed-use property in Cheltenham for GBP5.3 million. Says the purchase price represents a net initial yield of 7.2%, rising to 9.0% by 2026. Picton adds that the current annual income is GBP400,000, or GBP21 per square foot, with the "majority of leases containing fixed rental uplifts that will increase income to GBP500,000 per annum by 2026". The property, located at 109-117 High Street in Cheltenham, Gloucestershire, comprises of 7,700 square feet of ground floor retail space with 11,450 square feet of office space over two upper floors.
Chief Executive Michael Morris says: "This is our second, mixed use acquisition this year. It is a quality, future proofed building, that has recently been leased and after significant expenditure. The income profile and fixed rental uplifts will further improve our earnings."
The acquisition comes after Picton bought another mixed-use property in London for GBP13.7 million in May this year.
Current stock price: 89.56 pence
12-month change: down 8.2%
By Xindi Wei; xindiwei@alliancenews.com
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Picton Prop (PCTN)