Picton divests largest office asset for €39m

UK commercial real estate company Picton has sold its most valuable office property, the Stanford Building in London WC2, for £34.5 mln (€39.5 mln). 

Stanford Building, London

This sale aligns with Picton's strategy to reduce its office sector holdings and reinvest capital from lower-yielding assets.
Following the transaction, Picton's office exposure will decrease to 20% of its portfolio value (from 24% in June 2025), while its industrial, warehouse, and logistics exposure will increase to 68% (from 64% in June 2025). Retail and leisure will remain at 12%.
As previously announced, £12.5 mln (€14.3 mln) of the proceeds will fund the company's share buyback program, with the rest available for future investments, including existing portfolio opportunities and higher-yielding/growth prospects.
The Stanford Building, a 1,904 m2 Grade II-listed property acquired for £17.5 mln (€20.0 mln) in 2010, comprises four office floors, a residential unit, and ground/lower-floor retail. Picton comprehensively redeveloped it in 2020 into an all-electric, "best in class" building, which is currently fully leased. Picton will continue to use some space for its head office.
The sale price reflects a 4.6% net initial yield, a 1% premium to its March 2025 valuation, and a 1% discount to its June 2025 valuation.
Michael Morris, chief executive of Picton, commented: "This disposal crystallises value from our largest office asset and enables us to redeploy proceeds into our share buyback programme and investment opportunities. Over the last 18 months, we have reduced our office exposure by a third, realising gross proceeds of £85 mln (€97 mln), which have been redeployed to create more value for shareholders".
Picton manages a £726 mln (€830 mln) portfolio of 47 UK commercial properties, serving approximately 350 occupiers (as of June 30, 2025).