This B&Q megastore with 460 parking spaces is located in an established retail warehouse location, close to the city centre. Other local occupiers include Asda, Magnet and Evans Cycles.
The lease to B&Q Plc has a further 11.8 years unexpired and generates a rent of £1.24 million per annum, which equates to a low overall rental of approximately £12.00 per sq ft, with the next rent review in December 2017.
The property provides Picton with secure income with good prospects for growth from a modern prominent city centre property, with the added flexibility that, subject to planning, we can divide the property in the future if required and potentially put a pod unit on the car park.
In line with our strategy, the property increases the average lot size in the portfolio, is let to a strong covenant and was purchased off a low capital value of £172 per sq ft. We believe a net initial yield of 6.6% is attractive, recognising the income security and low rental level.
Key property details