Last checked at 11 Jan 2012 07:00
11 January 2012
MANAGEMENT INTERNALISATION UPDATE
Picton Property Income Limited ("Picton" or, the "Company"), the income focused property investment company, announces that it has successfully completed the process of internalisation as planned, effective January 2012.
In December 2010, the Company, formerly known as the ING UK Real Estate Income Trust Limited, announced its intention to internalise the investment management function to create an aligned management team focused solely on the assets of the Company, leading to significant cost savings which would further enhance the Company's dividend cover and potentially widen the investor base within the Company.
It has established a wholly owned FSA regulated subsidiary, Picton Capital Limited, which has assumed the responsibilities of the outgoing Investment Manager. Picton Capital has a team of 10 dedicated employees of which seven have been recruited from the outgoing Manager providing portfolio and operational continuity. The team includes five real estate and three finance professionals.
The internalisation is expected to lead to cost savings of around £0.6 million per annum on a like for like basis, higher than originally envisaged and it is anticipated that the management costs for 2012 will be in the order of £2.5 million.
The costs of internalising the management of the Company will be approximately £1.1 million, representing approximately 0.32 pence per share, which will be fully accounted for in the next NAV as at 31 December 2011, which is expected to be announced later this month. It is believed to be one of the most cost effective internalisations of any externally managed listed property company with the cost being equivalent to approximately one quarter's average historic management fee.
Nick Thompson, Chairman of Picton, said:"Internalising our management is a key part of Picton's strategy to deliver shareholder value through creating a management structure truly aligned with the interests of its shareholders. We have achieved this within budget and with greater on-going savings than originally envisaged, which will provide real benefits for shareholders going forward."
ENDS
For further information:
Tavistock Communications 020 7920 3150
Jeremy Carey
James Verstringhe
Northern Trust International Fund Administration Services (Guernsey) Limited 01481 745 529
David Sauvarin
Notes to Editors
Picton Property Income Limited* ('Picton'), an income focused Investment Company listed on the London and Channel Islands Stock Exchanges, was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.
With a Net Asset Value of £211.3 million at 30 September 2011 and approximately 900 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.
*Picton Property Income Limited changed its name from ING UK Real Estate Income Trust Limited on 1 June 2011.