Picton sells in Chancery Lane

Picton, the property investment company, has sold its interest at 1 Chancery Lane for £17.25m, reflecting a net initial yield of 3.9%.  

The building, located in London’s midtown, is a 15,000 sq ft multi-let retail and office block arranged over basement, ground and five upper floors.

The sale formed part of and now completes Picton’s strategy to reduce central London office exposure and use the proceeds to reduce gearing. As a result, Picton’s London office weighting will fall from 15% on 30 June 2016 to 13%.

The asset was acquired in 2005 for £9m and the sale price reflects a 7.8% premium to the 30 June 2016 external valuation.

Michael Morris, chief executive of Picton Capital, said: “This NAV accretive transaction captures the upside created since purchase, reduces our central London office exposure and enables us to reduce our overall debt levels within the group.”

Gryphon Property Partners and Farebrother acted for Picton Capital.