Partner Article

Picton Property Income acquires two Chatham office buildings in £19m deal

Picton Property Income Limited, a property investment company, has acquired two modern office buildings in Chatham, Kent for £19.05 million

30 and 50 Pembroke Court comprise two attractive and well specified modern buildings of 35,000 sq ft and 51,000 sq ft respectively.

The acquired buildings, which reflect a net initial yield of 8.62%, are prominently positioned on an established business park located in the Chatham Maritime office district, close to the A289, providing easy access to the A2 and M2 motorway, some 35 miles southeast of central London.

The properties are held by way of a 136-year ungeared leasehold interest.

Producing a diversified annual income of £1.74m and reflecting an average rent of £20 per sq ft, the buildings are currently occupied by Canterbury Christ Church University, NHS Property Services and Vanquis Bank with an average weighted lease length to expiry of 9.1 years and to earliest termination of 2.9 years.

The purchase price reflects a low capital value of £220 per sq ft, which is below the estimated cost of construction.

Michael Morris, Chief Executive of Picton Capital Limited, commented: “These are high quality buildings and we believe this is an attractive entry point both in terms of overall capital value and yield profile. Recognising the limited supply in this market, we are confident about prospects and believe we can improve the income profile further.

This is a significant deployment of proceeds from the final tranche of our placing programme. We have another income enhancing opportunity actively under consideration and hope to report further in the coming weeks.“

This was posted in Bdaily's Members' News section by Ellen Forster .