24 March 2014
PICTON PROPERTY INCOME LIMITED
("Picton" or the "Company")
Picton completes industrial property swap
Picton, the income focused investment company, has acquired Parkbury Industrial Estate ("Parkbury") in Radlett, Hertfordshire, in an exchange with SEGRO plc ("SEGRO") for one of its two distribution warehouses at Magna Park in Lutterworth, Leicestershire.
Picton has paid SEGRO the £6.5 million balance between the £40.5 million purchase price of Parkbury and the £34 million sale price of the Lutterworth property, using equity from its most recent fund raising on 27 November 2013.
Parkbury is a modern 32,810 sq m multi-let industrial estate located between junctions 22 and 21a of the M25. Comprising 24 units, Parkbury provides a diversified income stream from 20 occupiers including Viglen, BMI Healthcare, Franke and Blanco. The net initial yield on the acquisition is 6.3%.
The Lutterworth property is leased to Primark with a break option in 2016 and the net initial yield on the disposal of 8.1% which reflects the short term nature of the income.
Michael Morris, CEO of Picton Capital, commented:-
"Parkbury is a modern, quality asset, well located within the M25. This in line with our strategy to reshape our underlying portfolio into larger lot sizes which offer future income growth and follows disposals of smaller lower yielding assets earlier this year. Through this NAV accretive transaction we have removed the specific income risk associated with the Lutterworth asset."
For further information:
Tavistock Communications 020 7920 3150
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
David Sauvarin 01481 745529
Note to Editors
Picton Property Income Limited ('Picton') is an income focused, property investment company listed on the London Stock Exchange. It was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £204.3 million at 31 December 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.