Piction sells Croydon office building from GBP18.2m
Picton has completed the disposal of an office building in Croydon for GBP18.2 million.
Citylink, located on Addiscombe Road in Croydon, is a 48,000 sq ft detached office building constructed in 1986 and let to RBS and Fairfield School of Business. The building was sold with 10 per cent vacancy and the potential for vacant possession in 2022.
During the summer, Picton restructured the leases after occupiers BPP and The Body Shop exercised 2019 break clauses. This resulted in an early surrender with BPP, a simultaneous new short-term letting to Fairfield School of Business, as well as an early surrender with The Body Shop. As a result of these transactions, Picton received GBP0.6 million of additional income.
The sale price reflects a net initial yield of 4.8 per cent and a 7 per cent uplift to the independent June 2019 valuation. The property was acquired in 2005 for GBP9.1 million.
Michael Morris, Chief Executive of Picton, says: “The asset has performed well since acquisition in 2005 and the disposal follows the completion of a number of asset management initiatives. The proceeds from the sale will be reinvested into earnings accretive capital expenditure initiatives across the portfolio.”