Picton Property Sells Chester Office Building For GBP4 Million

LONDON (Alliance News) - Picton Property Income Ltd said Thursday it has exchanged contracts to sell a non-core property located in Chester, England, to Cheshire West and Chester Council for GBP3.85 million.

The property, located in central Chester, comprises a fully occupied, multi-let 22,000 square feet office building with nine occupiers and a weighted average unexpired lease length of just over three years.

The sale price reflects a net initial yield of 6.4% and a 5% premium to the December 31, 2017, independent valuation. The sale is expected to close in June.

The property company said the government purchasers had exercised a Compulsory Purchase Order for the property as part of the wider Chester Northgate retail, leisure and residential scheme.

Picton also expects to receive a further top-up payment of GBP150,000 on or before 2023, dependent on the timing of the Chester Northgate scheme.

"This [net asset value] accretive transaction captures the upside from our leasing and asset management activity. The proceeds further reduce the Group's LTV [loan-to value]," Chief Executive Michael Morris said.

Shares in the company were up 1.2% at 84.99p.