(Alliance News) - Picton Property Income Ltd on Thursday said it has completed the sale of an office building in Croydon, south London, for GBP18.2 million.
The sale price reflects a net initial yield of 4.8% and a 7% uplift to the independent June valuation. The property was acquired in 2005 for GBP9.1 million.
The company, which invests in commercial property, said Citylink is a 48,000 square feet detached
office building, constructed in 1986, and let to Royal Bank of Scotland Group PLC and Fairfield School of Business.
The building was sold with 10% vacancy and the potential for vacant possession in 2022, Picton noted.
"The asset has performed well since acquisition in 2005 and the disposal follows the completion of a number of asset management initiatives," said Chief Executive Michael Morris.
"The proceeds from the sale will be reinvested into earnings accretive capital expenditure initiatives across the portfolio," added Morris.
Picton shares were trading 0.8% higher in London on Thursday at 89.88 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Picton Prop (PCTN)