Picton Property Income Ltd on Tuesday said it has exchanged contracts for the sale of its second-largest London office asset, trimming its sector exposure.
The UK real estate investment trust has agreed to sell its office asset in Angel Gate, London for £29.6 million, reflecting a 5% increase from a recent valuation in December.
As it stands, the property is roughly occupied at half capacity and generates an annual net rental income of £700,000. Completion is expected on April 9 and the move will reduce Picton’s office exposure to 28% of its portfolio, from 30%.
Picton has confirmed that proceeds from the sale will be used to repay a £16.4 million credit facility, with a decision yet to be made regarding the rest.
However, the company is planning to reorientate part of its portfolio away from office spaces and
said it will consider options depending on market conditions and available investment opportunities.
Chief Executive Officer Michael Morris said: ‘This sale marks the culmination of a complex process to maximise value from a partially vacant office asset by securing residential planning in a Zone 1 London location.’
Picton shares were down 0.8% to 64.71 pence each in London on Tuesday morning.
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