THE £353m Picton Property Income trust has sold its second largest office, Angel Gate in London, for £29.6m.

The deal, which will be completed next week, is part of the trust's plan to move away from office assets, bringing its exposure to the sector from 30 per cent to 28 per cent.

Located a block away from Angel tube station, the office sold for five per cent above its valuation in December and brings in a rental income of £700,000 a year.

This rent is so low because the property is currently only 50 per cent occupied, meaning the sale will bring up Picton's occupancy rate from 90 per cent to 91 per cent.

The purchaser, Q Square, is located in Brighton and will pay for the sale in cash.

Picton said that part of the proceeds from the sale will be used to pay back its revolving credit facility debt of £16.4m, which is currently costing the trust 6.8 per cent per year.

(c) 2024 City A.M., source Newspaper