Picton provides a portfolio update, ahead of its annual results to be released in May 2022. Key transactions, recently completed include:
Retail & Leisure
In Long Acre, Covent Garden, Picton has let a flagship retail unit to an international fashion retailer for 10 years, subject to break. The rent of £0.5 million per annum is 22% ahead of the March 2021 ERV. The lease starts in May 2022 and the incentive package was less than one year’s rent. This was the Company’s single largest retail void.
Industrial
At Swiftbox, Rugby, Picton has let the unit to a logistics operator for 10 years, subject to break. The lease commenced the day after the existing occupier vacated. The new rent agreed at £0.7 million per annum is 11% ahead of both the previous passing rent and the March 2021 ERV. This was the Company’s largest lease event in the industrial sector, by passing rent, in 2022.
Office
At 180 West George Street, Glasgow, Picton has let a floor to an engineering consultancy for 10 years, subject to break. The rent agreed is £0.2 million per annum, 28% ahead of the March 2021 ERV. There is one remaining floor, which is under offer.
At 50 Farringdon Road, London EC1, Picton has extended a lease, due for expiry later this year. This was the Company’s largest lease event in the office sector, by passing rent in 2022, retaining £0.6 million per annum, which is 2% ahead of the March 2021 ERV. The transaction follows an upgrade of the heating and cooling system last year, transitioning from gas to electric, reducing carbon emissions from the building and upgrading the EPC from a D to a B.
Rent collection
Rent collection for the December quarter now stands above 99%.
Occupancy
Proforma occupancy has increased to 92% (December 2021: 91%)
"This is evidence of positive portfolio activity across all sectors. In all these transactions we have created a good quality product through upgrading, repositioning and refurbishing assets which has made the portfolio more attractive to current and future occupiers. These transactions will have a positive valuation impact, improve occupancy and reduce void holding costs for the Group."
Michael Morris Chief Executive