9 June 2015
PICTON PROPERTY INCOME LIMITED
("PICTON" OR THE "COMPANY")
PICTON ACQUIRES HIGH YIELDING SOUTH EAST OFFICES
Picton Property Income Limited, the property investment company, has acquired two modern office buildings in Chatham, Kent for £19.05 million, reflecting a net initial yield of 8.62%.
30 and 50 Pembroke Court comprise two attractive and well specified modern buildings of 35,000 sq ft and 51,000 sq ft respectively. They are prominently positioned on an established business park located in the Chatham Maritime office district, close to the A289, providing easy access to the A2 and M2 motorway, some 35 miles south east of central London. They are held by way of a 136 year ungeared leasehold interest.
They produce a diversified annual income of £1.74 million reflecting an average rent of £20 per sq ft and are currently occupied by Canterbury Christ Church University, NHS Property Services and Vanquis Bank with an average weighted lease length to expiry of 9.1 years and to earliest termination of 2.9 years. The purchase price reflects a low capital value of £220 per sq ft, which is below the estimated cost of construction.
Michael Morris, Chief Executive of Picton Capital Limited, commented:
"These are high quality buildings and we believe this is an attractive entry point both in terms of overall capital value and yield profile. Recognising the limited supply in this market, we are confident about prospects and believe we can improve the income profile further.
This is a significant deployment of proceeds from the final tranche of our placing programme. We have another income enhancing opportunity actively under consideration and hope to report further in the coming weeks."
For further information:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Picton Capital Limited
Michael Morris, 020 7011 9980, email@example.com
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
David Sauvarin, 01481 745001, firstname.lastname@example.org
Note to Editors
Picton Property Income Limited ('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 £370.0 million at 31 March 2015 and a portfolio of 57 assets, 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