Picton has agreed to sell its second-largest office asset, Angel Gate, London, EC1 for €34.6m, with completion due on 9 April 2024.
The Company plans to use a portion of the sale proceeds to pay off its revolving credit facility, which currently has a 6.8% per annum interest rate. This will reduce the Company's proforma LTV and weighted average interest rate, while also increasing the average maturity of the debt. The sale price is 5% higher than the property's 31 December 2023 valuation. The property is 50% occupied and generates an annual net rental income of €820,000.
The Company will consider options for the remaining proceeds of €15.44m following completion of the disposal, dependent upon prevailing market conditions and investment opportunities.
The purchaser, QSquare (Brighton) Ltd, will fulfil the consideration in cash.
Michael Morris, Chief Executive at Picton, commented: “The team has done an excellent job at Angel Gate. This sale marks the culmination of a complex process to maximise value from a partially vacant office asset by securing residential planning in a Zone 1 London location. The transaction reduces our office exposure and the sale price supports its December 2023 valuation.”
Image provided by TAVISTOCK.
Europe Real Estate — an overview of real estate developments in European countries.
