Picton Property Income has completed its management internalisation.
The income-focused property investment company, formerly known as the ING UK Real Estate Income Trust, announced its intention to internalise its investment management function in December 2010.
The aim was to “create an aligned management team focused solely on the assets of the company, leading to significant cost savings which would further enhance the company’s dividend cover and potentially widen the investor base within the company”.
It has established a wholly owned FSA-regulated subsidiary, Picton Capital, which has assumed the responsibilities of the outgoing investment manager, ING REIM.
The internalisation, effective this month, is expected to lead to cost savings of around £0.6m pa on a like-for-like basis, higher than originally envisaged. It is also expected that the management costs for 2012 will be in the order of £2.5m.
The costs of internalising the management of the company will be around £1.1m, representing 0.32p per share, and will be fully accounted for in the next NAV as at 31 December 2011, which is expected to be announced later this month.
Nick Thompson, chairman of Picton, said: “Internalising our management is a key part of Picton’s strategy to deliver shareholder value through creating a management structure truly aligned with the interests of its shareholders.
“We have achieved this within budget and with greater on-going savings than originally envisaged, which will provide real benefits for shareholders going forward.”
bridget.oconnell@estatesgazette.com
