Picton provides a portfolio update, ahead of its interim results to be announced on 10 November 2021.
In the quarter to 30 September 2021, the Company completed several asset management initiatives and lettings, as detailed below, adding £0.8 million per annum to the annualised rent roll, either in line or ahead of ERV.
Industrial
In Barking, it pre-let a 45,000 sq ft warehouse on a 15-year term, subject to landlord enabling works, which are due to complete this year. The new rent of £0.6 million per annum is 43% ahead of the previous passing rent and in line with the June ERV. The unit became vacant during the quarter.
Retail and Leisure
In Bury, it secured planning permission on a former retail warehouse unit to enable a pre-letting to JD Gyms on a ten-year term, subject to landlord enabling works. The rent of £0.15 million per annum is in line with the June ERV. Following the completion of this lease, the Company’s retail warehouse portfolio will be fully let.
In Huddersfield, it completed the sale of a non-core retail asset for £0.75 million, 7% ahead of the June valuation.
Office
In Glasgow, it completed the letting of the first floor at 180 West George Street for £0.2 million per annum, 4% ahead of the June ERV, for a term of five years.
In Chatham, it completed the letting of all the remaining space at 50 Pembroke Court to NatWest at £0.27 million per annum, 7% ahead of the June ERV, for a term of five years, subject to break.
Acquisition
In addition to these asset management initiatives, as announced on 1 October 2021, Picton has also acquired Madleaze Trading Estate in central Gloucester for £13.1 million. This will add £0.75 million per annum to the rent roll, with the potential to increase this further once the asset is fully let and rents are reset to current market levels.
Further detail will be provided in the interim results.
"These transactions will have a positive valuation impact and result in a further increase in occupancy and corresponding reduction in void holding costs across the portfolio. They also demonstrate the positive demand for our assets across all sectors and are further evidence that business activity is increasing."
Michael Morris Chief Executive