7th Apr 2014 09:46
LONDON (Alliance News) - Picton Property Income Ltd Monday said that it has acquired a 335,000 square foot Random House distribution warehouse, in Grantham, Lincolnshire for GBP11.5 million.
The Guernsey-based income focused investment company said the income is secured against UK general book publishing company The Random House Group Ltd, a Penguin Random House Company, for just under nine years and currently produces an annual rent of GBP1 million.
It said the purchase price represents a net initial yield of 8.2% and capital value of GBP34 per square foot.
Picton said that property has good access to the UK road network, located next to the A1 North and South arterial route.
"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," said Chief Executive Michael Morris in a statement.
Morris said that the group has now deployed all of the capital raised from both its recent share placings and disposal programme on an "earnings accretive basis."
Shares in Picton Property Income were trading 0.9% lower Monday morning at 57.25 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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