25th Sep 2013 09:23
LONDON (Alliance News) - Investment company Picton Property Income Limited said Wednesday that it had acquired a warehouse scheme in east London for GBP9.5 million, which it purchased using existing cash resources and proceeds from its equity issuance.
The Lyon Business Park is located in Barking, adjacent to the A13 and close to the A406. It is currently let to seven occupiers and produces an income of GBP65,000. The purchase price reflects a net initial yield after purchase costs of 6.5%, the company said, and one fully leased a yield of over 7.5%.
"This acquisition complements our existing portfolio and whilst strategically we were attracted to this location by virtue of its excellent road connectivity and the on-going regeneration of the Thames Gateway," Chief Executive, Michael Morris, said in a statement, "our short term focus is to improve the income profile through asset management."
Shares in Picton were trading up 0.15 pence at 51.40 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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