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Picton Prop Inc Ltd (PCTN)


Tuesday 17 September, 2019

Picton Prop Inc Ltd

Portfolio Update

17 September 2019

(“Picton”, the “Company” or the “Group”) 

LEI: 213800RYE59K9CKR4497  


Picton (LSE: PCTN), is pleased to provide an update on the portfolio following a period of significant activity since its June NAV update. 

Progress has been made across all sectors with the completion of 20 asset management initiatives including lettings, lease renewals, regears and rent reviews. These have a combined annual rent of £2.4 million per annum and were agreed on average 4% ahead of the June 2019 estimated rental values (ERVs).

In addition, the Company has started to deploy the capital raised in June, having completed two refurbishment projects, where occupiers have been identified and terms agreed in principle. Projects have commenced at a further seven assets, all of which are aimed at enhancing occupancy and rental income.

A further update will be provided in the Company’s interim results to 30 September 2019 which are expected to be released in November.

Michael Morris, Chief Executive of Picton, commented:

We have been encouraged by the level of portfolio activity over the traditionally quieter summer period, especially given the current political backdrop.  Since raising capital to invest in the portfolio in June, we have made significant progress on the identified projects and have already both attracted and retained new and existing occupiers, improving the income profile.  We are continuing to invest in our portfolio and unlock future opportunities to improve occupancy and rental income.”

The principal activity across sectors is as follows: -


At Parkbury in Radlett, two rent reviews were settled securing a 60% uplift to £0.4 million per annum, 11% ahead of the June ERV. Following completion of its refurbishment, terms have been agreed in principle to lease the final unit at the scheme.

At River Way in Harlow, a historic rent review was settled securing an 11% uplift to £0.5 million per annum, which is in line with the June ERV. A unit came back in July and terms have been agreed in principle to up-size an existing occupier, who will relocate from their current unit.  Concurrently, this unit is under offer to another occupier who is also up-sizing and taking an additional unit. 

At Nonsuch Industrial Estate in Epsom, an agreement to lease has been signed with Topps Tiles to take a unit at a rent of £0.1 million per annum. This was achieved by surrendering a lease to create a double unit. The letting was in line with the June ERV and the lease will complete following refurbishment works.

At Swiftbox in Rugby, a 100,000 sq ft distribution unit came back in July and works are on site for a comprehensive refurbishment, which is due to complete before the end of the year. The ERV is £0.6 million per annum.


At Waterside House in Leeds, an agreement to lease the whole building to a Government department was completed.  They are increasing their floor space by 50%, taking a new 10-year lease at a rent of £0.3 million per annum, which is in line with the June ERV. The lease will complete following refurbishment works, which are progressing.

In a back-to-back transaction at Citylink in Croydon, a lease over the entire west block that was due to expire in November 2019 was surrendered, with Picton receiving £0.4 million. The building was simultaneously let to the sub tenant (without requiring refurbishment) on a four-year lease, subject to a mutual break, at a rent of £0.6 million per annum, 2% ahead of the June ERV. The terms of the new lease, which has no rent incentive, create an opportunity for Picton, without incurring compensation costs, to facilitate a future redevelopment, taking advantage of the site’s proximity to East Croydon station. 

At Trident House, St. Albans, in another back-to-back transaction, a lease expiring in February 2022 on a small suite of offices was surrendered for a premium of £0.1 million. It was then subsequently re-let (without requiring refurbishment) at a rent of £0.1 million per annum, 8% ahead of the June ERV.

At Atlas House in Marlow, following completion of the office suite and common area refurbishment, terms have been agreed in principle to lease the final office suite. 

Ahead of future letting, projects are progressing at Chatham, Manchester and Milton Keynes, all aimed at creating best-in-class office and common area space. 

Retail and Leisure

At the Crown & Mitre Hotel, Carlisle, a rent review was settled, securing a 42% uplift in rent to £0.2 million per annum, 8% ahead of the June ERV. The lease has a further 12 years until expiry.

At Scots Corner in Birmingham, a lease of the office upper floor was renewed to a Government department, securing a minimum of five years, at a rent of £0.1 million per annum, 1% ahead of ERV on the May 2019 expiry date and with no rent incentive.

At Fishergate, Preston, following lettings to JD Sports and Tessuti, Slaters Menswear has entered into an agreement to lease the whole of the first floor at a rent of £0.1 million per annum, which is in line with the June ERV. The lease will complete following refurbishment works.

At Angouleme Retail Park in Bury, refurbishment works are ongoing to improve the external appearance of the units and common areas which are due to complete in November. We have renewed Argos’s lease for a further 10 years at a rent of £0.2 million per annum, 16% ahead of the June ERV. 

At Parc Tawe North, Swansea, works are on site to modernise the unit exteriors, replace signage and upgrade the common areas. Following completion of Lidl’s new lease, their fitting out works are progressing ahead of their relocation by the end of the year. 

At Stanford House in Covent Garden, following receipt of planning permission, contractor tender returns are awaited, which will enable the works to be instructed with a view to achieving practical completion in Q1 2020.


For further information:  

Jeremy Carey/James Verstringhe, 020 7920 3150, [email protected] 

Michael Morris, 020 7011 9980, [email protected]  

Note to Editors 

Picton is a UK REIT established in 2005. It owns and actively manages a £688 million diversified UK commercial property portfolio, invested across 49 assets and with around 350 occupiers (as at 30 June 2019). 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.

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