Picton has bought a 71,000 sq ft office building in Salford Quays, Greater Manchester from BAM Properties, for £17.6m – a net initial yield of 6.2%.
The property, known as Metro on Trafford Road, is close to the BBC’s home at Media City.
It is fully let to four tenants producing an income of £1.2m per year, which will increase to £1.5m per year in April 2017. Average rents at the building are £21.50 per sq ft.
The purchase was funded using proceeds from the disposal in November 2015 of a small low-yielding retail unit and £15.8m from Picton’s revolving credit facility.
Following this acquisition the company said it had more than £87m of uncharged assets and over £10m of undrawn facilities still available.
Picton Capital chief executive Michael Morris said: “This is a high quality office which will further enhance our portfolio. Recognising the growing importance of this location in both a micro and macro context, we are confident that this asset will make a positive contribution to both income and capital growth.”
Mason Phillips acted for Picton; JLL represented BAM Properties.
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