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Commercial Property News
A&J Mucklow actively seeking new properties, though not at any price.
A & J Mucklow Group plc, the Halesowen based REIT, at it's AGM today said it had made good progress since the start of the new financial year.
Rupert Mucklow, 44, Chairman said that industrial property values appear to have improved since their last valuation on 30 June. The firm's property investment portfolio now looks conservatively valued, compared with prices currently being paid for similar properties. However, the basic investment fundamentals have not changed. The occupier market is still weak, rental levels remain under pressure and the outlook for next 12 months has not improved.
However AJM found the letting market subdued in the first quarter, particularly for older properties. Enquiry levels have slowed and most active requirements have been for medium sized, better quality accommodation. Industrial stock availability is increasing and strong competition between landlords is forcing down rents. Despite these challenging times, AJM have managed to reduce our vacancy rate during the period from 9.5% to 8.3%, mainly due to the lettings of two modern industrial units at Middlemarch, Coventry (26,000 sq ft) and Tyseley, Birmingham (27,500 sq ft). Rent collection for September was similar to June.
Armed with it's new £65 million HSBC facility, Rupert Mucklow added that they are actively looking to acquire further, quality, long term investment properties, but may have to wait until the supply of investment stock increases and the current aggressive demand abates.
The Group's balance sheet remains strong, with gearing (net of cash) of 24% at 31 October 2009. The Group remains in compliance with all of its banking covenants.
Rupert Mucklow, 44, Chairman said that industrial property values appear to have improved since their last valuation on 30 June. The firm's property investment portfolio now looks conservatively valued, compared with prices currently being paid for similar properties. However, the basic investment fundamentals have not changed. The occupier market is still weak, rental levels remain under pressure and the outlook for next 12 months has not improved.
However AJM found the letting market subdued in the first quarter, particularly for older properties. Enquiry levels have slowed and most active requirements have been for medium sized, better quality accommodation. Industrial stock availability is increasing and strong competition between landlords is forcing down rents. Despite these challenging times, AJM have managed to reduce our vacancy rate during the period from 9.5% to 8.3%, mainly due to the lettings of two modern industrial units at Middlemarch, Coventry (26,000 sq ft) and Tyseley, Birmingham (27,500 sq ft). Rent collection for September was similar to June.
Armed with it's new £65 million HSBC facility, Rupert Mucklow added that they are actively looking to acquire further, quality, long term investment properties, but may have to wait until the supply of investment stock increases and the current aggressive demand abates.
The Group's balance sheet remains strong, with gearing (net of cash) of 24% at 31 October 2009. The Group remains in compliance with all of its banking covenants.
Tue, 10th Nov 2009