Portfolio Update

RNS Number : 4027M

Picton Property Income Limited

16 August 2011

 



16 August 2011

PICTON SECURES MAJOR LETTING AT NEWLY REFURBISHED 50 FARRINGDON ROAD, EC1

Trainline.com Limited takes 25,300 sq ft to become first tenant since major refurbishment

Picton Property Income Limited ("Picton" or the "Company"), a closed end property investment company, announces that it has secured a major letting at 50 Farringdon Road following the completion of a major refurbishment of the building. The Trainline.com Limited is taking 25,300 sq ft, representing over 75% of the available space for its new London Headquarters.

The UK's leading rail ticket retailer and rail ticket information provider has signed a 10 year lease across the first and second floors of the building at a rate of £33 per sq ft, slightly ahead of ERV, with an upwards only rent review/tenants break option in 2016.  This letting ensures that the building will be income producing within 12 months, producing a rental of £835,000 per annum.

Picton made a strategic decision in 2010 to unlock further value from the property through a programme of asset management. It undertook a lease surrender on the building in April 2010, receiving a payment in excess of £4 million, ahead of the tenant break due in September 2010.  A significant refurbishment programme was subsequently undertaken creating a Category A specification building. Positioned in an improving location, it offers space appealing to a wide variety of occupiers and benefits from its close proximity to a number of excellent transport links including the future Crossrail Station at Farringdon, which is scheduled for completion in 2018.

Commenting on the letting, Nicholas Thompson, Chairman of Picton, said:

"Our Company's strategic focus is on delivering high quality income and a covered dividend. To have transformed Farringdon Road into an income producing property by securing a tenant so soon after completing a major refurbishment programme is an endorsement of our strategic approach to asset management.

"We are confident of securing a tenant for the remaining 7,000 sq ft and believe this asset will provide further opportunity for income growth with such significant infrastructure improvements being undertaken in the immediate vicinity."

For further information:

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648, [e-mail]

Financial Dynamics

Dido Laurimore/Lauence Jones, 020 7831 3113

Notes to Editors

Picton Property Income Limited* ('Picton'), a closed-end Investment Company listed on the London and Channel Islands Stock Exchanges, was established in 2005 to invest both directly and indirectly in commercial property across the United Kingdom.

With a Net Asset Value of GBP 209 million at 30 June 2011 and over 900 investors, 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.

On the 1 January 2012 the Company will become a self managed property investment company with Picton Capital Limited, a wholly owned subsidiary of Picton Property Income Limited, taking over investment management from ING REIM UK Limited.

*Picton Property Income Limited changed its name from ING UK Real Estate Income Trust Limited on 1 June 2011.

 

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