Picton has acquired the Parkbury industrial estate in Radlett, Hertfordshire, UK in an exchange with UK REIT Segro for one of its two distribution warehouses at Magna Park in Lutterworth, Leicestershire.
Picton has acquired the Parkbury industrial estate in Radlett, Hertfordshire, UK in an exchange with UK REIT Segro for one of its two distribution warehouses at Magna Park in Lutterworth, Leicestershire.
Picton paid Segro the £6.5 mln (€8 mln) balance between the £40.5 mln purchase price of Parkbury and the £34 mln sale price of the Lutterworth property, using equity from its most recent fund raising on 27 November 2013.
Parkbury is a modern 32,810 m2 multi-let industrial estate comprising 24 units. It provides a diversified income stream from 20 occupiers including Viglen, BMI Healthcare, Franke and Blanco. The net initial yield on the acquisition is 6.3%.
The Lutterworth property is leased to Primark with a break option in 2016 and the net initial yield on the disposal of 8.1% reflects the short-term nature of the income.
Michael Morris, CEO of Picton Capital, commented: 'This in line with our strategy to reshape our underlying portfolio into larger lot sizes which offer future income growth and follows disposals of smaller lower-yielding assets earlier this year.'
