Issue of Equity

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED ANDISNOTFOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLYORINDIRECTLY, INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIESANDPOSSESSIONS, ANY OF THE UNITED STATES AND THE DISTRICT OFCOLUMBIA),AUSTRALIA,NEW ZEALAND, CANADA, JAPAN, SOUTH AFRICA, ANY MEMBER STATESOFTHE EEA (OTHERTHAN THE UNITED KINGDOM) OR ANY OTHER JURISDICTION IN WHICHSUCHRELEASE,PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT IS AN ADVERTISMENT AND NOT A PROSPECTUS. THISANNOUNCEMENTIS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE ANOFFER OR INVITATIONTO PURCHASE OR ACQUIRE ANY TRANSFERABLE SECURITIES (AS DEFINED IN SCHEDULE 11AOFTHE FINANCIAL SERVICES AND MARKETS ACT 2000), NOR SHALL IT FORM THE BASISOFANY CONTRACT FOR THE SALE OF ANY INTEREST IN A TRANSFERABLE SECURITY ORASOLICITATION, INDUCEMENT, ADVICE ORRECOMMENDATION TO EFFECT ANY TRANSACTIONOFANY KIND WHATSOEVER.POTENTIAL INVESTORS SHOULD READ THE RELEVANTPROSPECT USES CAREFULLY BEFORE ANY INVESTMENT DECISION IS MADE. PICTON PROPERTY INCOME LIMITED ("Picton" or the "Company") Issue of Equity In connection with the Company's placing programme, the board of directors ofPicton Property Income Limited (the "Company") announces that 10,294,118 NewOrdinary Shares in the Company have been placed by Oriel Securities and J.P.Morgan Cazenove, raising gross proceeds of £7.0 millionat a price of 68.0 penceper share, conditional upon Admission. The Issue price represents a premium tothe closing share price of 67.75 pence per share on 21 January 2015 as well asthelast published net asset value per share of 66.0 pence per share. TheCompany expects to use these proceeds to finance property investmentopportunities currently under consideration. Application has been made for the New Ordinary Shares to be admitted to listingon the premium segment of the UK Listing Authority's Official List and totrading on the London Stock Exchange's main market for listed securities. It isexpected that such admissions will become effective and that dealings in theNew Ordinary Shares will commence at 8:00 am on 27 January 2015. The NewOrdinary Shares will rank pari passu with, and will have the same rights as,the Ordinary Shares of the Company already in issue. Following Admission, the number of ordinary shares that the Company hasinissuewill be 488,701,567. The total number of voting rights of theCompanywill be 488,701,567 and this figure may be used by shareholders asthedenominator forthe calculations by which they will determine if theyarerequired to notifytheir interest in, or a change to their interest intheCompany, under theDisclosure and Transparency Rules The Company's placing programme will continue for the term set out in theCompany's prospectus dated 1 May 2014 (as supplemented). Commenting, Nick Thompson, Chairman of Picton said: "We were aware of interest from one significant institutional shareholderthroughout our December 2014 capital raise. Following further due diligence bythem we are pleased that this further placing allows this investor toparticipate in Picton's exciting investment story and provides further fundsfor investment". For further information: Northern Trust International Fund Telephone: +44 1481 745 529Administration Services (Guernsey) LimitedDavid SauvarinThe Company SecretaryTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QL Picton Capital Limited Telephone: +44 20 7628 4800Michael Morris J.P. Morgan Cazenove Telephone: +44 20 7742 4000William Simmonds Oriel Securities Limited Telephone: +44 20 7710 7600Roger Clarke Tavistock Communications Telephone: +44 20 7920 3150Jeremy Carey, James Verstringhe Important Information Definitions used in the Prospectus issued by the Company dated 1 May 2014 shallhave the same meanings when used in this announcement unless the contextotherwise requires. The distribution of this announcement in jurisdictions other than the UnitedKingdom may be restricted by law and, therefore, any persons who are subject tothe laws of any jurisdiction other than the United Kingdom should informthemselves about, and observe, any applicable requirements. Failure to complywith any such restrictions may constitute a violation of the securities laws ofany jurisdiction. Each of Oriel Securities Limited ("Oriel"), which is authorised and regulatedby the Financial Conduct Authority, and J.P. Morgan Securities plc, whichconducts its UK investment banking activities as J.P. Morgan Cazenove ("J.P.Morgan Cazenove") and which is authorised by the Prudential RegulationAuthority and regulated by the Prudential Regulation Authority and theFinancial Conduct Authority, is acting exclusively for the Company and forno-one else in connection with the Placing and will not be responsible to anyother person for providing the protections afforded to clients of Oriel or J.P.Morgan Cazenove or for providing advice in connection with the Placing, thecontents of this announcement or any matters referred to in this announcement.Neither Oriel nor J.P. Morgan Cazenove is responsible for the contents of thisannouncement. This does not exclude or limit any responsibilities which eitherOriel or J.P. Morgan Cazenove may have under FSMA or the regulatory regimeestablished thereunder. No person has been authorised to give any information or make anyrepresentations other than those contained in this announcement and, if givenor made, such information or representations must not be relied upon as havingbeen authorised by the Company, Oriel or J.P. Morgan Cazenove. None of theCompany, Oriel or J.P. Morgan Cazenove takes any responsibility for, or canprovide assurance as to the reliability of, other information that you might begiven. This announcement has been prepared for the purposes of complying withapplicable law and regulation in the United Kingdom and the informationdisclosed may not be the same as that which would have been disclosed if thisannouncement had been prepared in accordance with the laws and regulations ofany jurisdiction outside of the United Kingdom. The expected timetable including the date of Admission may be influenced by arange of circumstances such as market conditions. There is no guarantee thatAdmission will occur and you should not base your financial decisions on theCompany's intentions in relation to the Placing Programme and Admission at thisstage. Acquiring New Ordinary Shares to which this Announcement relates mayexpose an investor to a risk of losing all of the amount invested. Personsconsidering making such an investment should consult an authorised personspecialising in advising on such investments. This Announcement does notconstitute a recommendation concerning the Capital Raise. The value of NewOrdinary Shares can decrease as well as increase. Potential investors shouldconsult a professional advisor as to the suitability of the Issue for theperson concerned. Past performance or information in this Announcement or anyof the documents relating to the Capital Raise cannot be relied upon as a guideto future performance.