Picton acquires mixed-use property in Cheltenham (GB)

Picton acquires mixed-use property in Cheltenham (GB)

Picton has completed the freehold acquisition of 109-117 High Street, Cheltenham for €6.2m (£5.3m). The mixed-use property comprises 7,700ft² of ground floor retail space with 11,450ft² of office space over two upper floors and is located in Cheltenham’s pedestrianised town centre, adjacent to John Lewis.

 

Comprehensively refurbished in 2020, the property has strong net zero credentials including EPC ratings of B on the office and retail elements.  It is leased to four occupiers including Tesco, Just Go Holidays and Barnardo’s with an average lease length of 12 years to expiry and eight years to break. The purchase price reflects a net initial yield of 7.2%, rising to 9.0 % by 2026.

 

Michael Morris, Chief Executive of Picton, commented: “This is our second, mixed-use acquisition this year. It is a quality, future proofed building, that has recently been leased and after significant expenditure. The income profile and fixed rental uplifts will further improve our earnings.”

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