News » UK
15. April 2014     Print Print 

Picton acquires Random House Distribution Warehouse

Picton, the income focused investment company, has acquired a 335,000 sq ft East Midlands distribution warehouse, in Grantham, Lincolnshire for £11.48 million. The property has good access to the UK road network, located immediately adjacent to the A1 North/South arterial route. The income is secured against The Random House Group Ltd (a Penguin Random House Company) for just under nine years and currently produces an annual rent of £1,000,000, equivalent to just under £3 per sq ft. The purchase price represents a net initial yield of 8.2% and capital value of £34 per sq ft.

Michael Morris, CEO of Picton Capital, commented:
“This acquisition complements recent trading activity in the portfolio. 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. Following this transaction, we have now deployed all of the capital raised from both our recent share placings and disposal programme on an earnings accretive basis.”