7 April 2014
PICTON PROPERTY INCOME LIMITED
("Picton" or the "Company")
Picton acquires Random House Distribution Warehouse
Picton, the income focused investment company, has acquired a 335,000 sq ft East Midlands distribution warehouse, in Grantham, Lincolnshire for £11.48 million.
The property has good access to the UK road network, located immediately adjacent to the A1 North/South arterial route. The income is secured against The Random House Group Ltd (a Penguin Random House Company) for just under nine years and currently produces an annual rent of £1,000,000, equivalent to just under £3 per sq ft. The purchase price represents a net initial yield of 8.2% and capital value of £34 per sq ft.
Michael Morris, CEO of Picton Capital, commented:
"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."
For further information:
Tavistock Communications 020 7920 3150
James Verstringhe firstname.lastname@example.org
Picton Capital Limited 020 7011 9980
Michael Morris email@example.com
Northern Trust International Fund Administration Services (Guernsey) Limited 01481 745529
David Sauvarin firstname.lastname@example.org
Note to Editors
Picton Property Income Limited ('Picton') is an income focused, property investment company listed on the London Stock Exchange. It was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £204.3 million at 31 December 2013 and approximately 860 investors, the Company's objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors.