Picton Prop Inc Ltd Non-Core Asset Disposal
February 13 2017 - 2:00AM
UK Regulatory
TIDMPCTN
13 February 2017
PICTON PROPERTY INCOME LIMITED
("Picton", the "Company" or the "Group")
Non-Core Asset Disposal
Picton (LSE:PCTN), the income focused property investment company, has disposed
of a non-core property in Drury Lane, Oldham, for GBP2.2 million, completing its
business plan for the asset.
The warehouse was purchased in April 2010 for GBP0.4 million with an annual rent
of GBP74,000 as part of the acquisition of Rugby REIT. During Picton's ownership,
it secured planning consent to change the use from industrial to leisure,
completed a full refurbishment, acquired adjacent land for car parking and
subsequently let the transformed asset to The Gym Group Limited until 2031 at
an annual rent of GBP150,000.
The sale price reflects a net initial yield of 6.4% and a 10% premium to the 31
December 2016 external valuation. Net of the GBP0.8 million of costs incurred
since acquisition, the asset was sold at an 80% profit.
Michael Morris, Chief Executive of Picton Capital Limited, commented: "This is
a good example of how we used our knowledge of the local market and asset
management expertise to double the income and capture a significant increase in
value. The proceeds can be used, together with existing funds, to
opportunistically acquire assets in larger lot sizes that we believe will
generate attractive future returns."
For further information:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
james.verstringhe@tavistock.co.uk
Picton Capital Limited
Michael Morris, 020 7011 9980, michael.morris@picton.co.uk
Note to Editors
Picton is an income focused property investment company listed on the London
Stock Exchange. Picton can invest both directly and indirectly in commercial
property across the United Kingdom.
With Net Assets of GBP434.4 million at 31 December 2016, 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.picton.co.uk
ENDS
END
(END) Dow Jones Newswires
February 13, 2017 02:00 ET (07:00 GMT)