Picton Property reports occupier lease break at Rushden 300

Picton Property Income Ltd on Friday said the occupier of one of its logistics assets in Rushden, Northamptonshire ended its lease early.

The Guernsey-based real estate investment trust said the occupier of Rushden 300, a 315,000 square foot distribution warehouse, has paid £2.5 million in accordance with the lease terms.

This consists of an £800,000 break penalty, equivalent to six months’ rent, and £1.7 million in dilapidations.

Picton said the break penalty will ‘mitigate any short-term loss of income, while the dilapidations receipt will enable the company to upgrade the building ahead of re-letting.’

The company said Rushden 300 generated an annual rent of £1.6 million, equivalent to 3.4% of the portfolio’s contracted rent as at March 31.

Picton said, as of September 30, this represented the ‘largest single reversionary opportunity’ within the portfolio, with an estimated rental value more than 50% above the passing rent.

The company said an independent valuation had anticipated the lease break and ‘no adverse valuation impact’ was recorded at September 30 relative to March 31.

Shares in Picton fell 0.4% to 78.22 pence on Friday afternoon in London.

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