7 Nov 2019
PICTON PROPERTY INCOME LIMITED
(“Picton”, the “Company” or the “Group”)
Greater London Disposal Funds Future Portfolio Initiatives
Picton has completed the disposal of an office building in Croydon for £18.2 million.
Citylink, located on Addiscombe Road in Croydon, is a 48,000 sq ft detached office building constructed in 1986 and let to RBS and Fairfield School of Business. The building was sold with 10% vacancy and the potential for vacant possession in 2022.
During the summer, Picton restructured the leases after occupiers BPP and The Body Shop exercised 2019 break clauses. This resulted in an early surrender with BPP, a simultaneous new short-term letting to Fairfield School of Business, as well as an early surrender with The Body Shop. As a result of these transactions, Picton received £0.6 million of additional income.
The sale price reflects a net initial yield of 4.8% and a 7% uplift to the independent June 2019 valuation. The property was acquired in 2005 for £9.1 million.
Michael Morris, Chief Executive of Picton, commented: “The asset has performed well since acquisition in 2005 and the disposal follows the completion of a number of asset management initiatives. The proceeds from the sale will be reinvested into earnings accretive capital expenditure initiatives across the portfolio.”
For further information:
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.
For more information please visit: www.picton.co.uk