Welcome to our ‘picton posts’.

These are regular articles, updates and insights from the team.

They are intended to provide a little more ‘colour’ on our operation, our thoughts on the marketplace and other relevant articles.

We hope they are interesting, useful and even at times entertaining.

We’d love to hear your feedback so get in touch with us by emailing enquiries@picton.co.uk

Money Observer 2017 Best Property Trust

Money Observer 2017 logo

We are delighted to have won Best Property Trust at the Money Observer Trust Awards 2017. This award is fantastic recognition of our consistent outperformance of NAV total returns over three years.

Citywire: 2017 Outlook

Watch: Chief Executive, Michael Morris, interviewed here on the impact of Brexit on the real estate market and looking ahead to where the opportunities lie in 2017.

Citywire: 2017 Outlook

Our Year In Review: 2016

We look back on 2016 at some of our key highlights including IPD outperformance and delivering 11.8% total shareholder return.

Delivered an 11.8% total shareholder return

Achieved NAV growth of 10.8%

Paid £17.8 million in dividends

Reshaped our portfolio increasing our average lot size to 11.4 million

We reduced our London weighting by 5.6% to 22.8% and increased our industrial weighting by 2.3% to 39.2%

Outperformed IPD benchmark by 6.1% and awarded IPD data quality award

Repaid 7.25% zero dividend preference shares, significantly reducing cost of debt and increasing debt maturity profile

Reduced net gearing to 28.3%

Established new £27 million revolving credit facility

Awarded EPRA Gold for the second year running for our 2015/2016 Annual Report and Accounts

Won Money Observer Best Large Trust 2016

Won Investment Week Property Company of the Year 2016

The Picton Team

March 2017

Investment Company of the Year Awards


We are delighted to have won the Property Category at Investment Week's 2016 Investment Company of the Year Awards!

The awards showcase investment companies that produce consistent performance. Shortlisted companies are selected using a mixture of AIC data and research as well as submissions made by managers within the sector categories.

Michael Morris, Chief Executive, commented "These awards are for excellence within the closed ended Investment Company sector and we are proud to be a winner in 2016. I believe this is recognition of our track record and the results delivered through our occupier focused, opportunity led portfolio strategy."

The Picton Team, November 2016

The planning system - creating value and income growth

The value of a real estate asset derives from a number of factors:- the income stream from the occupier, the fundamentals of the building (location, quality, age), and permited use.

It is the last point - permitted use - that enables the owner to optimise the previous two. When the market changes, the ability to change the use of a building allows owners and occupiers to change the dynamic of a location.

In 2010, Picton acquired a 16,000 sq ft former builders merchants in Oldham through a portfolio transaction. The building had an A1 retail planning consent (restricted to the sale of building products), and was leased to a national trade retailer at £74,000 per annum.

The purchase price was discounted and reflected the fact that the tenant was not in occupation and the lease only had 5 years left to run. The combination of an oversupplied local market, condition of the unit and short lease, made it hard to secure a new occupier before the lease expires.

Affordable gyms have been a real success story over the past few years as they have capitalised on a gap in the market for budget driven consumers unable or unwilling to pay expensive annual subscriptions to gym chains. Part of this success is due to their ability to utilise space in locations previously occupied by retail, office and industrial occupiers.

Recognising this, we approached and started negotiations with a number of gym operators for our Oldham site, and quickly identified The Gym Group as our preferred occupier.

However, in order to complete the transaction we needed to obtain planning consent to change the permitted use to allow gym usage. In addition we needed to acquire a small adjacent piece of land owned by Oldham Council to increase the site area and allow provision of sufficient car parking.

The Gym Logo

Working in partnership with The Gym Group we have since successfully applied for and secured a change of planning use to D2 (leisure use), and have also acquired the vacant site from Oldham Council to deliver the additional car parking.

As a result, contracts have been exchanged on a 15 year Lease with The Gym Group at an annual rent of £150,000 per annum (more than double the rent under the previous use) and work is now underway to refurbish the building for their occupation in Summer 2016.

When completed the new gym will provide a much needed amenity for the community, and significantly improve the visual appearance of a prominent site in Oldham.




Oldham - after

It also demonstrates the value that can be added by engaging with occupiers and local authorities, as well as using the planning system to optimised the use of vacant and unloved sites.

The Picton Team, October 2016