Picton Prop Inc Ltd Completion of Asset Disposal
August 31 2016 - 1:00AM
UK Regulatory
TIDMPCTN
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 GBP27.8 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
GBP0.67 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 GBP16.1 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:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150, jverstringhe@tavistock.co.uk
Picton Capital Limited
Michael 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 GBP418.0 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
END
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