Picton Prop Regulatory News (PCTN)

Picton Property Income Limited

("Picton", or together with its subsidiaries, the "Group")

10 October 2012

Results of Rollover Offer and Placing of Zero Dividend Preference Shares and Conclusion of Refinancing

Highlights

·; Issue of 22,000,000 new 4 year Zero Dividend Preference Shares at 100 pence each

·; Gross Redemption Yield of 7.25%

·; Conclusion of £230m refinancing process

·; New arrangements provide a balanced debt maturity profile of 4, 10, 15 and 20 years with a reduced blended average interest rate, fixed at 4.48%

Picton is pleased to announce the successful issue of 22,000,000 new zero dividend preference shares ("2016 ZDP Shares") with a Gross Redemption Yield of 7.25% pursuant to the Rollover Offer and Placing.

The 2016 ZDP Shares have an issue price of 100 pence and a final capital entitlement of 132.31 pence per 2016 ZDP Share.

The offering had an excellent response from existing 2012 ZDP Shareholders with the Issue being more than 75% covered within the range of 6.5% to 8.0% following the close of the Rollover Offer. Similarly, strong demand from new investors resulted in the Issue being oversubscribed within the range of 6.5% to 8.0% and allowed the 2016 ZDP Shares to be priced in the middle of the range at a GRY of 7.25%.

The scaling back and allocation of the Issue, in line with the policy set out in the Prospectus, is set out below:

·; any orders received in the Rollover Offer or the Placing at a GRY below 7.25% or at Strike GRY will be filled in full;

·; any orders received in the Rollover Offer or the Placing at a GRY above 7.25% will not be filled;

·; any orders received in the Rollover Offer at 7.25% will be scaled back pro-rata to the total orders in the Rollover Offer at 7.25%, resulting in investors receiving approximately 60% of their elections at 7.25%;

·; any orders in the Placing at 7.25% will not be filled.

This completes Picton's refinancing process providing a balanced and staggered debt maturity profile of 4, 10, 15 and 20 years with the ability to manage the debt position by optimising the timing of asset disposals. The Group's blended average interest rate on its debt is now 4.48%, lower than the blended average interest rate of 4.98% as at 30 June 2012, prior to the refinancing exercise.

Applications have been made to the UK Listing Authority and to the London Stock Exchange for 22,000,000 2016 ZDP Shares to be admitted to a standard listing on the Official List and to trading on the London Stock Exchange's main market for listed securities. It is expected that such admissions will become effective and that dealings in the 2016 ZDP Shares will commence on 15 October 2012.

Following completion of the Rollover Offer, there will be 33,318,545 2012 ZDP Shares in issue (including the 5,902,317 2012 ZDP Shares held by the Group). A circular will shortly be sent to the remaining holders of the 2012 ZDP Shares in relation to the wind-up of IRET Securities Limited to enable the payment of the final capital entitlement on the remaining 2012 ZDP Shares.

Picton expects to announce its net asset value as at 30 September 2012 and the next quarterly dividend during the week commencing 22 October 2012 at which time it will update the market on the dividend policy review referred to in the final results announcement on 11 July 2012.

Nick Thompson, Chairman of Picton, said: "We are delighted to complete our refinancing exercise with this successful ZDP issue. The support from our existing ZDP holders, ordinary shareholders and new investors was extremely encouraging. This was an important final step in the refinancing process and now enables Picton to complete its dividend policy review."

Michael Morris, Chief Executive of Picton Capital, said: "The conclusion of this significant refinancing means Picton now has a balanced capital structure and lower cost of debt. The focus going forward will be to continue to maximise returns from the portfolio, drive occupancy rates and invest into assets to enhance both income and value."

For further information:

Defined terms used in this announcement shall have the same meaning as ascribed to them in the prospectus of the Issuer dated 13 September 2012.