Picton Property sells retail unit for £3.25m

Picton Poperty Income has sold its freehold interest in a high street retail unit in Guildford for £3.25m, reflecting a net initial yield of 4.3%.

The unit is leased to L’Oreal UK, trading as Kiehl’s, for a further 4.8 years at an annual passing rent of £147,500. This price reflects a 9.2% premium to the September 2015 valuation and a 32% uplift from the 2010 acquisition price.

Michael Morris, chief executive of Picton Capital, said: “We have taken the opportunity to dispose of this low yielding retail asset, crystalising the upside since purchase. Whilst only a small lot size, the healthy premium achieved relative to the September valuation is, we believe, encouraging.”

At 1050 GMT, shares in the property investment company were up 0.4% at 69.75p.