Qsquare Ltd completed the acquisition of Office asset, Angel Gate, London from Picton Property Income Limited.
April 16, 2024
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Qsquare (Brighton) Ltd agreed to acquire Office asset, Angel Gate, London from Picton Property Income Limited (LSE:PCTN) for £29.6 million on April 2, 2024. Under the terms of agreement, the purchaser, QSquare (Brighton) Ltd, will fulfil the consideration in cash and the sale consideration is 5% ahead of the December 31, 2023 valuation of £28.1 million. Currently the property is approximately 50% occupied and represents the Company's largest single void, with an annual net rental income of £0.7 million. Following completion of the transaction, Picton's office exposure will reduce from 30% to 28% and portfolio occupancy will increase from 90% to 91%. The Company will consider options for the remaining proceeds of £13.2 million following completion of the disposal, dependent upon prevailing market conditions and investment opportunities. The Company intends to use part of the proceeds to repay its revolving credit facility ('RCF') of £16.4 million, currently costing 6.8% per annum. Following this repayment, based on the December 31, 2023 valuation of Picton's property portfolio, the Company's proforma LTV will reduce from 28% to 25% and the weighted average interest rate will reduce from 3.9% to 3.7%. The average maturity of the debt will also increase to eight years with 100% of the drawn debt fixed. The firm put Angel Gate up for sale through CBRE in January as an office-to-residential conversion opportunity. Saira Johnston joined the board as a new chief financial officer of Picton from Gravis Capital Management. The transaction is expected to close April 9, 2024. Gerald Eve LLP provided due diligence to Qsquare (Brighton) Ltd.
Qsquare (Brighton) Ltd completed the acquisition of Office asset, Angel Gate, London from Picton Property Income Limited (LSE:PCTN) on April 17, 2024.
Picton Property Income Limited is a real estate investment trust (REIT) investing in United Kingdom commercial property. Its diversified property portfolio consists of approximately 49 assets invested in the industrial, office, retail and leisure sectors. Its industrial properties portfolio includes Parkbury Industrial Estate, River Way Industrial Estate, Lyon Business Park, Sundon Business Park, The Business Centre, Nonsuch Industrial Estate, Madleaze Trading Estate, Mill Place Trading Estate, Easter Court, and Abbey Business Park. Its office portfolio includes Angel Gate, Stanford Building, 50 Farringdon Road, Colchester Business Park, 180 West George Street, Charlotte Terrace, Longcross Court, Atlas House, and Waterside House. Its retail and leisure portfolio include Gloucester Retail Park, Thistle Express, Angouleme Retail Park, Crown & Mitre Complex, and 53-57 Broadmead, and 78-80 Briggate. Its subsidiaries include Picton (UK) REIT (SPV) Limited and Picton (UK) Listed Real Estate.