Strategic Report
Financial Statements
Additional Information
Governance
Lyon Business Park, Barking Growing occupancy and income Our industrial estate in Barking has benefitted from strong occupational demand despite three units becoming vacant during the Covid-19 pandemic. This estate was the most severely impacted property in the portfolio in terms of loss of income through occupier failures over the past two years. During the year we refurbished and pre-let the largest unit of 45,000 sq ft to a well-established catering company. The unit was leased for a 15-year term certain at £0.6 million per annum, 46% ahead of the previous passing rent and 5% ahead of the March 2021 ERV. The lease included our standard green lease provisions. A smaller unit became vacant in October and was leased, with nominal expenditure, to an existing occupier on a new five-year lease at £0.1 million per annum, 38% ahead of the previous passing rent and 25% ahead of ERV. The lease included our standard green lease provisions. The occupier also extended their current lease, which expired in two years, to five years with a rental uplift in 2024. A further unit of 26,000 sq ft became vacant in November and is currently being refurbished in line with our sustainable refurbishment guidelines. We are targeting a B-rated EPC. The previous occupier was paying a rent of £0.3 million per annum and we believe we will achieve a new rent 25% ahead of this on a new letting. Three further leases were renewed securing £0.1 million per annum, a 23% uplift on the previous passing rent and in line with ERV.
45% Increase in contracted rent on lettings
Portfolio Performance See more information on pages 20-21
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Picton Property Income Limited Annual Report 2022
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