Mucklow(A.& J.)Group PLC Trading Statement (1350P)
November 15 2016 - 02:00AM
UK Regulatory
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RNS Number : 1350P
Mucklow(A.& J.)Group PLC
15 November 2016
AGM Statement November 2016
A & J Mucklow Group Plc, the Midlands specialist Real Estate
Investment Trust, announces a trading update for the period from 1
July 2016 to 14 November 2016 to coincide with its Annual General
Meeting this morning.
Rupert Mucklow, Chairman, will comment:
The Group has maintained its positive momentum during the first
four months of the new financial year and, so far, the business has
not felt any adverse effect from the referendum decision.
The number of active letting requirements for Midland's
industrial property has remained steady since our year end on 30
June 2016, while the availability of space in the region has
continued to decline. As a consequence, our occupancy rate has
risen further to another record high of 97.1% and rental levels are
still growing.
Industrial property values in the Midlands appear to have
remained stable, despite the initial uncertainty following the
referendum result. We have seen an increase in the supply of
investment opportunities, mainly from Institutional retail funds
looking to provide more liquidity, but there are still plenty of
active buyers in the market and pricing remains very
competitive.
We recently acquired a prominent 70,182 sq ft
industrial/warehouse building in Barton-under-Needwood for GBP5.6m.
The property is located at the front of Barton Business Park, on
the A38 corridor, midway between the A50 and A5 trunk roads. Built
in 2005, the unit is currently let at a rent of GBP0.41m per
annum.
Building work is progressing well on our pre-let office
development at Grove Park, Leicester, which we are acquiring on a
forward commitment basis for GBP4.7m. The property will comprise
20,620 sq ft of high quality offices with 112 car parking spaces.
Completion of the development is expected at the end of this month
and the initial rent will be GBP0.35m per annum.
Terms have also been agreed on our first pre-let industrial
development at i54 Wolverhampton. We will shortly be submitting a
planning application for a 43,000 sq ft industrial unit on the
phase 1 land for Tentec Limited, a subsidiary of Atlas Copco. The
initial rent on completion of the property will be GBP0.28m per
annum.
Contracts have been exchanged on the sale of our 12,000 sq ft
office building in Henley on Thames for GBP4.1m, with completion
scheduled for the end of this month. The property became vacant in
August 2016 and attracted considerable interest from local
residential developers. The property was last valued for office use
at GBP2.2m in June 2016. The sale is not conditional on
planning.
Financially, the Group remains in good health with total net
borrowings of GBP82.3m at 31 October 2016, against a property
investment portfolio last valued at GBP369.8m and loan to value of
22%.
Since our year end, we have renewed our GBP64m banking
facilities with HSBC for a further 5 years to 2021 at a 30% lower
margin.
It is still too early for us to assess what the longer term
impact of leaving the EU will have on the UK economy and our
business. However, we have been very encouraged by our experiences
over the last 4 months and although we anticipate some challenges
ahead, we remain positive about prospects for the full year.
Contact:
Rupert Mucklow, Chairman
David Wooldridge, Finance Director
0121 550 1841
This information is provided by RNS
The company news service from the London Stock Exchange
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