Ediston Property Investment Company has reported a Net Asset Value (NAV) increase of just under 5 per cent for the quarter 31 March – 30 June 2015. Ediston’s portfolio is now valued at £123.65 million, equating to a 4.9 per cent like-for-like increase.
The valuation does not include the three acquisitions made during the period at a net cost of £33.1 million. These properties cover a wide range of uses, with an office building in Bath, a multi-let retail warehouse park in Daventry and a B&Q Extra retail warehouse in Coatbridge, Glasgow, all bolstering the already strong portfolio.
In terms of leasing activity, the second quarter saw the REIT halve its portfolio’s void rate from 18 per cent to just 9 per cent. The largest deal of the quarter concerned the largest void in the portfolio, 145 Morrison Street in Edinburgh, which was let in full to Capita Business Services Limited. The growing business services firm took out a 15 year lease without a break clause on the 26,894 sq ft property for an annual rent of £676,136.
Elsewhere in the portfolio, Ediston let the 1,800 sq ft ninth floor of St Philips Point in Birmingham to Accountancy Action Limited on a five year lease set at £24 per sq ft. This means that only two floors of nine remain unoccupied at the property and, given the current demand for office space in the West Midlands, these too are likely to be snapped up in the near future.
These activities allowed the NAV per share as of 30 June to reach 104.6 pence, while the company itself was able to report cash and cash equivalent balances of approximately £17.2 million.
Although Ediston is yet to reveal any details of ongoing property transactions, it has allocated the majority of these funds for expected portfolio acquisitions, indicating that its portfolio may grow even further as the current quarter progresses.
Ediston, which was launched in October 2014, invests principally in office, retail and industrial assets, targeting net initial yields in excess of 6.5 per cent.
The next independent quarterly valuation of the portfolio will be conducted by Knight Frank as at 30 September 2015, with the NAV per share announcement at the same date announced in October 2015.
