Picton Property Income Limited has completed the sale of a vacant office building in Cardiff to Fusion Group for £8.37m. Fusion will redevelop the building to deliver Longcross Court – a new purpose-built student accommodation (PBSA) scheme.
In October 2023, Fusion entered into a forward purchase agreement with UK listed REIT, Picton Property Income, to acquire the Longcross office building site upon receipt of planning permission. Supported by planning consultants Pearce Planning, approval was granted in September 2024.
The disposal price is in line with the December 2024 valuation and represents a 21% premium to the March 2024 valuation.
Designed by Corstorphine & Wright, Longcross Court will deliver 706 beds across 488 units, as well as 750 sqm of internal amenities, including a wellbeing studio, juice bar, fitness suite, and landscaped outdoor spaces.
Fusion is also targeting a BREEAM Outstanding certification for the Longcross Court scheme, which will include renewable energy facilities through air source heat pumps and PV panels.
“This is the third office asset Picton has sold, realising gross sale proceeds of £51m since March 2024, and representing nearly a quarter of our office portfolio. Prior to each disposal, planning permission has been secured for residential or student use, which has enabled disposals at premium levels to the March 2024 valuations.
“These disposals have enabled us to improve portfolio occupancy, allocate capital for investment into the existing portfolio, repay debt and commence our share buyback programme.”
Michael Morris, Chief Executive, Picton
Picton has retained an adjoining site, which comprises a small industrial unit and open storage land used for car parking and generates an annual income of £0.1m.
Picton Property Income Limited, established in 2005, is a UK-based real estate investment trust (REIT) listed on the London Stock Exchange. It manages a £737m commercial property portfolio across 48 assets with around 350 occupiers, focusing on delivering high income returns and capital growth, particularly in the industrial sector.
The UK-based real estate investment trust was pleased to have completed the disposal of the vacant office building in South Wales and its future transformation into a high-quality PBSA.
