25 September 2013
PICTON PROPERTY INCOME LIMITED
("Picton" or the "Company")
THAMES GATEWAY ACQUISTION
Picton (LSE:PCTN), the income focused property investment company, announces that it has acquired a prominent, well located multi-let distribution and warehouse scheme in east London for £9.48 million. The purchase was made utilising existing cash resources and proceeds from its equity issuance announced on 5 September 2013.
Lyon Business Park, Barking is located adjacent to the A13 and close to the A406 (North Circular); equidistant from both central London and the M25. It comprises 12 units purpose built in the early 1990's, totalling 103,600 sq ft. Two larger distribution units represent 69% of the floor space, with 10 small business units comprising the remainder.
Currently let to seven occupiers, the scheme produces an income of £0.65 million, reflecting approximately £7.40 per sq ft and there is a weighted average unexpired lease term of 6 years. The opportunity exists to increase the income to £0.74 million through letting three smaller vacant units equivalent to 14% of the total floor area.
The purchase price reflects a net initial yield after purchase costs of 6.5% and once fully leased a reversionary yield of over 7.5%. The capital value is approximately £92 per sq ft.
Michael Morris, Chief Executive of Picton Capital Limited, commented:
"We have been able to deploy funds quickly and effectively following our issuance of equity earlier this month. This acquisition complements our existing portfolio and whilst strategically we were attracted to this location by virtue of its excellent road connectivity and the on going regeneration of the Thames Gateway, our short term focus is to improve the income profile through asset management."
For further information:
Tavistock Communications 020 79203150
James Verstringhe firstname.lastname@example.org
Picton Capital Limited 020 7011 9980
Michael Morris email@example.com
Northern Trust International Fund Administration Services (Guernsey) Limited 01481 745 529
David Sauvarin firstname.lastname@example.org
Note to Editors
Picton Property Income Limited ('Picton') is an income focused, property investment company listed on the London and Channel Islands Stock Exchanges. It was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £169.6 million at 30 June 2013 and approximately 860 investors, 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.