Overview
Picton Property Income has announced that it has disposed of two small, non-core retail assets in Bath for a total of £3.23m. The sale price reflects an aggregate net initial yield of 4.7% and a 29% premium to the 30 September external valuation.
The company says that the disposals of 2 Bath Street and 6 Argyle Street, are in line with its ongoing strategy to reshape the portfolio in favour of larger assets with greater potential for capital and income growth. Both assets were originally purchased with a combined value of £2.08m as part of the Rugby REIT acquisition in 2010 and have since generated attractive income and capital returns.
About Picton Property Income
Picton Property Income Limited invests in commercial property located throughout the United Kingdom. It listed on the London Stock Exchange in December 2005 and is traded on the eXchange’s premium segment.
As a closed-ended Property Investment Company, Picton’s investment objective is to provide shareholders with an attractive level of income, together with the potential for capital growth from directly or indirectly investing across the principal commercial property sectors; namely office, retail, industrial and leisure. It says that, “Through an occupier-focused, opportunity-led approach to real estate asset management, Picton aims to be one of the consistently best performing diversified UK property companies listed on the main market of the London Stock Exchange”.
Picton’s strategy
Picton has a portfolio of assets with a high income bias. It says that assets are managed to maximise the potential for both income and, where appropriate, capital growth. It aims to achieve through, amongst other things, improving the quality of accommodation, extending income longevity and exploring the potential to create value through refurbishment, change of use or redevelopment.
Picton Property Income sells two Bath retail properties for £3.23m : PCTN