REG - Picton Property Inc. - Disposal of largest office asset

Picton Property IncomeAnnouncement

25/09/2025 07:00

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RNS Number : 7123A  Picton Property Income Limited  25 September 2025

 25 September 2025

 

PICTON PROPERTY INCOME LIMITED

('Picton' or the 'Company')

Disposal of largest office asset

Picton has completed the sale of Stanford Building, London WC2, its largest
office asset by value, for £34.5 million.

The disposal is consistent with Picton's strategy of reducing exposure to the
office sector and recycling capital from lower-yielding assets. Following
completion, Picton's proforma office exposure reduces to 20% by value (June
2025: 24%), whilst industrial, warehouse and logistics exposure rises to 68%
(June 2025: 64%) and retail and leisure exposure is 12% (June 2025:12%).

As announced on 10 September 2025, £12.5 million of the proceeds will be used
to fund the Company's share buyback programme, with the remainder available
to support future investment opportunities, both within the portfolio and
alongside higher yielding/growth opportunities.

Stanford Building was acquired as part of the Rugby REIT plc acquisition in
2010 for £17.5 million. It is a Grade II-listed property totalling 20,500 sq
ft, comprising four floors of office space, a fifth-floor residential unit and
a retail store on the ground and lower floors. In 2020, Picton completed a
comprehensive repositioning to create a best in class, all electric
building. The building is fully leased and Picton will continue to occupy
space for its head office.

The disposal price represents a net initial yield of 4.6% and 1% premium to
the March 2025 external valuation and a 1% discount to the June 2025 external
valuation.

 

Michael Morris, Chief Executive of Picton, commented:

"This disposal crystallises value from our largest office asset and enables us
to redeploy proceeds into our share buyback programme and investment
opportunities. Over the last 18 months we have reduced our office exposure by
a third, realising gross proceeds of £85 million, which have been redeployed
to create more value for shareholders".

 

For further information:

 

Picton

Michael Morris, Chief Executive

020 7011 9980, michael.morris@picton.co.uk

 

Tavistock

James Verstringhe

020 7920 3150, james.verstringhe@tavistock.co.uk
(mailto:james.verstringhe@tavistock.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 £726 million UK commercial property
portfolio, invested across 47 assets and with around 350 occupiers (as at 30
June 2025).

 

Through an occupier focused, opportunity led approach, Picton aims to be the
consistently best performing diversified UK REIT and has delivered upper
quartile outperformance and a consistently higher income return than the MSCI
UK 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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