Picton has bought two high street retail units in Peterborough for £9.1m, at a yield of 6.5%.

The property, which totals 89,000 sq ft, is let to TK Maxx and New Look until 2020 and 2021 respectively.

The units, with frontage on the pedestrianised Bridge Street, produce an annual rent of £625,000 reflecting a low average overall rent of £7/ sq ft, which is subject to review in 2015 and 2016.

Picton has now made over £81m of acquisitions during the course of this year and this purchase fully utilises the remainder of the funds allocated for acquisitions raised during the £35m initial placing in May of this year.

Michael Morris, chief executive, said: “We were attracted to this asset due to a combination of factors, including the strong population growth within Peterborough, the property’s core location, the flexibility of the units and the low overall rental levels which are subject to review over the next couple of years.”

Cooper Rose Real Estate acted for Picton.

Contact Giles Cooper or Ben Rose.