Last checked at 31 Aug 2016 07:00
PICTON PROPERTY INCOME LTD - Completion of Asset DisposalPICTON PROPERTY INCOME LTD - Completion of Asset Disposal
PR Newswire
London, August 31
31 August 2016
PICTON PROPERTY INCOME LIMITED(“Picton”, the “Company” or the “Group”)
COMPLETION OF ASSET DISPOSAL
Further to its announcement on 12 July 2016, Picton (LSE: PCTN) confirms that the disposal of one of its City of London office assets, Boundary House, Jewry Street, EC3 completed on 30 August 2016.
The disposal proceeds of £27.8 million were in line with the June 2016 valuation and will be used to reduce debt, recognising the Company’s zero dividend preference share maturity in October 2016.
In addition and in a separate transaction, the Company has secured a payment of £0.67 million from a nearby owner, in respect of a Rights of Light claim.
As a result of this disposal, Picton’s central London office exposure will reduce from 19% on 30 June 2016 to 15.5% on a pro forma basis. Similarly, the Group’s LTV will reduce from 34.4% on 30 June 2016 to 31.5% on a pro forma basis.
The property was acquired in 2006 for £16.1 million.
Michael Morris, CEO of Picton Capital commented:
“This disposal forms part of a plan to reduce both the quantum and overall cost of debt within the Group, as we repay our ZDP’s this October. By completing these two transactions we will be able to achieve this, reshaping the portfolio whilst enhancing both dividend cover and NAV.”
ENDS
For further information:
TavistockJeremy Carey/James Verstringhe, 020 7920 3150, jverstringhe@tavistock.co.uk
Picton Capital LimitedMichael Morris, 020 7011 9980, michael.morris@picton.co.uk
Note to Editors
Picton is an income focused property investment company listed on the London Stock Exchange. Picton can invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £418.0 million at 30 June 2016, 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. www.picton.co.uk