Disposal of smaller non core assets

RNS Number : 4754A

Picton Property Income Limited

20 February 2014

 



20 February 2014

PICTON PROPERTY INCOME LIMITED

("Picton" or the "Company")

Disposal of smaller non core assets

Picton, has successfully disposed of two lower yielding London assets for a combined consideration of £6.0 million, reflecting an initial yield of 5.0%, and a combined 6% premium to their independent 31 December 2013 valuation.

Picton has exchanged contracts to dispose of its long leasehold interest in a central London office property, 28 Austin Friars, EC2, which is currently fully let to 5 occupiers including the Company's investment management subsidiary, Picton Capital. The property has a weighted average unexpired lease term of 2.2 years, including Picton Capital, which as part of the transaction has agreed a minimum three year lease commitment.

In a separate transaction it has completed the disposal of a retail property at George Street, Richmond, which is let to Links of London for a further 10 years.

By way of background both of these assets were acquired in 2010 for a combined consideration of £3.6 million.  The successful value creation reflects the improved market conditions since acquisition and in respect of Austin Friars in particular, the repositioning of the asset through occupier focussed initiatives.

Michael Morris, CEO of Picton Capital commented :

"These latest disposals are in line with our strategy to sell smaller, lower yielding assets from the portfolio once we have enhanced value through our various asset management initiatives. Proceeds from the sale will provide fire power for acquisitions in larger lot sizes."

ENDS

For further information:

Tavistock Communications                                                                                               020 7920 3150

James Verstringhe                                                                                           [e-mail]

Picton Capital Limited                                                                                                       020 7011 9980

Michael Morris                                                                                       [e-mail]

Northern Trust International Fund Administration Services (Guernsey) Limited                01481 745529

David Sauvarin                                                                                                                     [e-mail]                                    

Note to Editors

Picton Property Income Limited ('Picton') is an income focused, property investment company listed on the London and Channel Islands Stock Exchanges. It was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.

With Net Assets of £204.3 million at 31 December 2013 and approximately 860 investors, the Company's objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors.

www.pictonproperty.co.uk

 

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