Asset Disposal

Picton Property Income Limited

02 April 2024

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

2 April 2024

PICTON PROPERTY INCOME LIMITED

 ('Picton' or the 'Company')

LEI: 213800RYE59K9CKR4497

Asset Disposal

Picton exchanges contracts for the sale of part vacant office asset

Picton has agreed to sell its second largest office asset, Angel Gate, London, EC1 for £29.6 million, with completion due on 9 April 2024.

This is in line with the Company's strategy to repurpose appropriate office assets and follows the Company securing residential planning consents during 2023 and a subsequent structured marketing process this year.

Following completion of the transaction, Picton's office exposure will reduce from 30% to 28% and portfolio occupancy will increase from 90% to 91%.

The Company intends to use part of the proceeds to repay its revolving credit facility ('RCF') of £16.4 million, currently costing 6.8% per annum. Following this repayment, based on the 31 December 2023 valuation of Picton's property portfolio, the Company's proforma LTV will reduce from 28% to 25% and the weighted average interest rate will reduce from 3.9% to 3.7%. The average maturity of the debt will also increase to eight years with 100% of the drawn debt fixed.

The sale consideration is 5% ahead of the 31 December 2023 valuation of £28.1 million. Currently the property is approximately 50% occupied and represents the Company's largest single void, with an annual net rental income of £0.7 million.

The Company will consider options for the remaining proceeds of £13.2 million following completion of the disposal, dependent upon prevailing market conditions and investment opportunities.

The purchaser, QSquare (Brighton) Ltd, will fulfil the consideration in cash.

Michael Morris, Chief Executive at Picton, commented: "The team has done an excellent job at Angel Gate. This sale marks the culmination of a complex process to maximise value from a partially vacant office asset by securing residential planning in a Zone 1 London location.

The transaction reduces our office exposure and the sale price supports its December 2023 valuation."

For further information:

Picton

Michael Morris, Chief Executive

020 7011 9980, [e-mail]

Tavistock

James Verstringhe

0207 920 3150, [e-mail]

About Picton

Picton, established in 2005, is a UK REIT. It owns and actively manages a £745 million diversified UK commercial property portfolio, invested across 49 assets and with around 400 occupiers (as of 31 December 2023).

Through an occupier focused, opportunity led approach to asset management, Picton aims to be one of the consistently best performing diversified UK focused property companies listed on the main market of the London Stock Exchange.

For more information please visit: www.picton.co.uk

ENDS

 

END