UK real estate investment trust Picton is selling the Angel Gate office property in London to QSquare Brighton for £29.6m (€31.5m).

Picton said the property, which is 50% occupied, is being sold 5% above the asset’s 31 December 2023 valuation of £28.1m. It added that the proceeds will be used to repay a revolving credit facility of £16.4m.

Picton will consider options for the remaining proceeds of £13.2m following the completion of the disposal, dependent upon prevailing market conditions and investment opportunities, it said.

The London-listed UK property company said the disposal is in line with its strategy to repurpose appropriate office assets and follows the company securing residential planning consents in 2023 and a subsequent structured marketing process this year.

The disposal will reduce Picton’s office exposure from 30% to 28%.

Michael Morris, Picton’s CEO, said: “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.”

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