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,
michael.morris@picton.co.uk
Tavistock
James Verstringhe
0207 920 3150,
james.verstringhe@tavistock.co.uk
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