Over the past few years we have seen a dramatic turnaround at this property. We have repositioned the buildings by creating contemporary media style space and have revitalised the common areas. As a result we have seen very strong occupational demand with units letting quickly and rents are now approaching £50 per sq ft 150% ahead of where they were historically.
Since 2012, Picton has acquired three units as part of its ongoing strategy to consolidate its ownership at this core holding. In April, we acquired a fourth long leasehold interest at Unit 12 for a net consideration of £1.1 million, reflecting approximately £350 per sq ft. The unit comprises a 3,200 sq ft self contained office which was approximately 70% occupied.
The passing rent on purchase was £46,000 per annum, reflecting a low average rental of just under £20 per sq ft. The passing rent is currently £70,000 per annum and the value is £1.5 million with further active management angles.
Three units have been comprehensively refurbished during the year and were quickly re-let for a total rent of £446,000, 23% above ERV and double the previous passing rents.
The final vacant unit is currently under offer at a rent of £151,000 (in line with ERV) to a national café operator to be their new headquarters building when they take occupation in June.
We continue to utilise lease events and active management to grow and increase the longevity of the income stream.
Key property details