Picton Prop Inc Ltd Non-Core Asset Disposal

 
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, 
[e-mail] 
 
 
Picton Capital Limited 
Michael Morris, 020 7011 9980, [e-mail] 
 
 
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)