PICTON PROPERTY INCOME LD

M&A Activity • May 16, 2022

National Storage Mechanism | Additional information

Picton Property Income Ltd - Acquisition

PR Newswire

London, May 13

16 May 2022

PICTON PROPERTY INCOME LIMITED

(“Picton”, the “Company” or the “Group”)

LEI: 213800RYE59K9CKR4497

Picton makes opportunistic mixed-use London purchase

Picton has completed the freehold acquisition of Charlotte Terrace, Hammersmith Road, W14 for £13.7 million.

Charlotte Terrace comprises four adjoining buildings, which total 28,500 sq ft of office space and 4,400q ft of retail space, arranged over five floors.  The property was redeveloped behind the façade in 1990 and is Grade II listed, meaning there is no business rates payable on void units.

The property is located close to Olympia, which is currently undergoing a £1 billion redevelopment delivering a new creative district, with a new theatre, entertainment venue, hotel, office, retail and leisure space, which will enhance the surrounding area.

The current annual rental income is £0.5 million equating to £34 per sq ft. The office space is let to seven occupiers and the retail space is let to two occupiers.  This is expected to rise to over £1.1 million once the remaining units are leased.   To improve occupancy, Picton will upgrade the offices and rollout SwiftSpace, its recently launched flexible lease offering.

The purchase price reflects a net initial yield of 3.3%, rising to over 8% once fully let and reflecting a low capital value of £417 per sq ft, which is below its estimated replacement cost.

The Company has funded the acquisition from existing cash resources.

Michael Morris, Chief Executive of Picton, commented:

“We have taken advantage of our diversified approach to invest in a mixed-use asset where we believe we can unlock significant income and value with our occupier focused asset management approach. In addition, we think this area will be significantly enhanced once the Olympia scheme is delivered over the next few years.”

For further information,

Tavistock

Jeremy Carey/James Verstringhe, 020 7920 3150, james.verstringhe@tavistock.co.uk

Notes to Editors

Picton, established in 2005, is a UK REIT. It owns and actively manages a £790 million diversified UK commercial property portfolio, invested across 46 assets and with around 350 occupiers (as at 31 December 2021).

Through an occupier focused, opportunity led approach to asset management, Picton aims to be one of the consistently best performing diversified UK focused property companies listed on the main market of the London Stock Exchange.

For more information please visit: www.picton.co.uk

ENDS