Picton Property Income Limited Annual Report 2022

Strategic Report

Financial Statements

Additional Information

Governance

Madleaze and Mill Place Trading Estates Industrial acquisitions In Gloucester, we acquired two adjoining city centre industrial estates, in separate transactions. Madleaze Trading Estate was acquired in September 2021 and the adjacent Mill Place Trading Estate was acquired in February 2022 for a combined £23.5 million plus costs. This reflects a low capital value of £35 per sq ft. Our combined ownership totals over 29 acres, with 670,000 sq ft of warehouse and ancillary accommodation and a site coverage of 52%. The average rent on acquisition was only £2.76 per sq ft. On purchase there was 100,000 sq ft of vacant accommodation to be upgraded or redeveloped across both estates. We have already leased 22,000 sq ft of space with very limited capital expenditure and have interest in a further 21,000 sq ft. Occupational demand is robust and there are 13 lease events in 2022, although we expect the majority of occupiers to remain. There are numerous asset management opportunities, noting the short weighted average lease length. The central location of the site does open the possibility of a larger mixed-use development in the longer-term. We are exploring this whilst seeking to increase the income and value through proactive management and improving the appeal of the estates to new and existing occupiers.

£23.5m Purchase price £1.4m Passing rent at acquisition

Portfolio Performance See more information on pages 20-21

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 Picton Property Income Limited  Annual Report 2022

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