Picton has completed the sale of a vacant office building in Cardiff to Fusion Group for £8.37m.
In October 2023, Picton exchanged contracts to sell the Longcross office building to Fusion Group conditional on planning consent for the redevelopment of the building into a purpose-built student accommodation (PBSA) scheme. Planning consent to deliver a 706-bed PBSA scheme on the site was secured in September last year.
The disposal price is in line with the December 2024 valuation and represents a 21% premium to the March 2024 valuation.
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.
Michael Morris, chief executive of Picton, said: “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.”
