Picton acquires Gloucester industrial estate for €15.2m (GB)

Picton acquires Gloucester industrial estate for €15.2m (GB)

Picton has completed the freehold acquisition of Madleaze Trading Estate, located in central Gloucester for €15.2m (£13.1m). Adjacent to Gloucester Quays Retail Park and the Gloucester and Sharpness canal, the property comprises 18 industrial units totalling 304,000ft² on a 10.3-acre site. The estate is let to eight occupiers and currently includes two vacant units, which are to be refurbished prior to re-leasing.  

 

The total rental income is €0.87m (£0.75m) per annum, equating to only €3.18 (£2.74) per ft². The purchase price reflects a net initial yield of 6.1% and a low capital value of €51 (£44) per ft², which is below the estimated reinstatement cost.

 

Michael Morris, Chief Executive of Picton, commented: “The estate offers short-term potential for income and capital growth through leasing vacant units and capturing the upside from such a low rental base. We intend to further improve and reposition the estate to widen its appeal for new and existing occupiers.”

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