REG - Picton Property Inc. - Completion of Cardiff office disposal

Picton Property IncomeAnnouncement

31/03/2025 07:15

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RNS Number : 8730C  Picton Property Income Limited  31 March 2025

31 March 2025

 

PICTON PROPERTY INCOME LIMITED

('Picton' or the 'Company')

Completion of Cardiff office disposal

 

Further to the Company's announcement of 9 September 2024, Picton confirms
that it has completed the disposal of a vacant office building, which is to be
redeveloped for student accommodation.

Background

In October 2023, Picton exchanged contracts to sell Longcross, Cardiff. The
transaction was conditional on planning permission, for which an application
was submitted in May 2024. Picton then secured vacant possession of the asset
and subsequently, in September 2024, consent was secured for a 706 bed scheme.

Completion Update

With the section 106 agreement having been finalised and the judicial review
period expired, the conditions in the sale contract have been satisfied and
completion has now occurred.

The disposal price of £8.37 million is in line with the December 2024
valuation and a 21% premium to the March 2024 valuation. The transaction was
structured so the price was dependent on the exact planning consent secured,
which allowed Picton to benefit from upside delivered through the planning
process.

Picton retains an adjoining site, which is fully leased with an annual income
of £0.1 million, comprising a small industrial unit and open storage land,
which is currently used for car parking.

Michael Morris, Chief Executive of Picton, commented:

"This is the third office asset Picton has sold, realising gross sale proceeds
of £51 million since March 2024, and representing nearly a quarter of our
office portfolio. Prior to each disposal, planning permission has been secured
for residential or student use, which has enabled disposals at premium levels
to the March 2024 valuations. These disposals have enabled us to improve
portfolio occupancy, allocate capital for investment into the existing
portfolio, repay debt and commence our share buyback programme."

For further information:

 

Picton

Kathy Thompson, Company Secretary

020 7011 9988, kathy.thompson@picton.co.uk
(mailto:kathy.thompson@picton.co.uk)

 

About Picton

Established in 2005, Picton is listed on the main market of the London Stock
Exchange and is a constituent of a number of EPRA indices including the FTSE
EPRA Nareit Global Index.

 

Picton owns and actively manages a £737 million UK commercial property
portfolio, invested across 48 assets and with around 350 occupiers (as at 31
December 2024).

 

Through an occupier focused, opportunity led approach, Picton aims to be one
of the consistently best performing diversified UK REITs and has delivered
upper quartile outperformance and a consistently higher income return than the
MSCI Quarterly Property Index since launch.

 

With a portfolio strategically positioned to capture income and capital
growth, currently weighted towards the industrial sector, Picton's agile
business model provides flexibility to adapt to evolving market trends over
the long-term.

 

Picton has a responsible approach to business and is committed to being net
zero carbon by 2040.

 

For more information please visit:www.picton.co.uk (http://www.picton.co.uk)

 

LEI: 213800RYE59K9CKR4497

 

 

 

ENDS

 

 

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