Property investment company Picton has acquired the freehold of a Sheffield retail warehouse for £17.7 million, reflecting a net initial yield of 6.6 per cent.
The property, which was built in 2002, is located on an established nine acre site close to the city centre comprising a 103,000 sq ft retail warehouse and a 40,000 sq ft outdoor garden centre. A builder’s yard and a car park are also located on the site.
Current occupier B&Q has 12.4 years remaining on the lease which is subject to a review in two years’ time. The current terms generate an annual income of £1.24 million, equating to a rental value of around £12 per sq ft.
The acquisition is in line with Picton’s ongoing strategy of purchasing well located assets offering the potential of medium term income growth, and adds to a portfolio valued at £382.6 million.
CEO of Picton Capital, Michael Morris, said: “This is an opportunistic acquisition in a sector where we currently have low exposure. It reflects our confidence in this location and the underlying property fundamentals, including the longevity of the income stream and the potential future growth.”
