Mucklow(A.& J.)Group PLC Trading Statement (3650W)
November 14 2017 - 2:00AM
UK Regulatory
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RNS Number : 3650W
Mucklow(A.& J.)Group PLC
14 November 2017
AGM Statement November 2017
A & J Mucklow Group Plc, the Midlands specialist Real Estate
Investment Trust, announces a trading update for the period from 1
July 2017 to 13 November 2017 to coincide with its Annual General
Meeting this morning.
Rupert Mucklow, Chairman, will comment:
The Group's property portfolio has continued to benefit from
steady occupier demand and a shortage of quality business space
during the first four months of this financial year, enabling us to
maintain our solid financial performance from the previous
year.
The Midlands property investment market has also continued to be
strongly competitive during the same period, suggesting yields may
still be falling and values rising on some prime regional
properties. We declined to buy any investment properties during the
period.
We sold our Bull Ring Trading Estate in Birmingham last month
for GBP13.0m, significantly above our 30 June 2017 valuation of
GBP5.4m. The main tenant on the estate is due to vacate next year
after 30 years of occupation.
Conditions in the Midlands property market are gradually
becoming more favourable for pre-let development, due to the
limited supply of stock. We are experiencing greater interest from
potential occupiers on our two industrial sites at Tyseley,
Birmingham and i54 Wolverhampton.
Our current void rate remains low at around 4.2%. We re-let
approximately 25% of our vacant space during the period, while a
similar amount was returned to us on lease expiries. We will,
however, be taking back a 110,000 sq ft warehouse in Worcester next
month, so our void rate is likely to be higher at our half year
end.
A number of lease renewals and extensions have been agreed since
1 July 2017, including a 29,500 sq ft retail warehouse let to
Dunelm for 15 years and a 41,500 sq ft warehouse let to Safestore
for a further 25 years.
The substantial refurbishment of our 24,125 sq ft office
building at Trinity Central, close to Birmingham International
railway station, is due to complete in January next year and is
starting to generate some good occupier interest.
Our 44,250 sq ft pre-let industrial building at i54
Wolverhampton is progressing well and is due to complete in
February 2018.
Financially the Group remains in good health, with total net
borrowings of GBP73.9m at 31 October 2017, against a property
investment portfolio last valued at GBP386.9m on 30 June 2017.
We are currently in a very good position, benefiting from low
gearing, significant cash resources and a heavy weighting towards
Midlands industrial property. Nevertheless, we remain mindful that
circumstances can change rapidly, particularly with Brexit looming.
We are, however, confident of our ability to manage and protect the
investment portfolio through different phases of the property cycle
and we remain positive about our 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
END
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