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Max Property sells Farnborough Business Park for £16.5million to remove anomaly
Max Property Group Plc today said it has sold one of its business parks for £16.5 million, as it doesn't fit well with the rest of its Industrious portfolio.
Max Property said it has sold Southwood Business Park in Farnborough to Scottish Widows and Centurion Properties, giving it £1.8 million of profit over the September valuation.
The park, which contains 152,000 square foot of industrial estate, was acquired as part of Max's deal to buy a portfolio of industrial properties from the receivers of the Industrious Group in August.
However the company said that the park is let at £130 a square foot while the rest of the Industrious portfolio has higher-yielding assets that are let at around £30 a square foot.
Max Property said that, after debt repayment, £7.8 million of cash from the sale will be released for new acquisitions.
Mike Brown of Prestbury Investments LLP, external asset manager for MPG, commented:
"Southwood Business Park is an institutional grade asset. However, at £130 per sq. ft, capital value it is not a natural fit with the remainder of the Industrious portfolio which comprises higher yielding assets averaging just £30 per sq. ft capital value. Scottish Widows and Centurion Properties approached us recently and should be congratulated for the speed with which they carried out this transaction."
Max Property said it has sold Southwood Business Park in Farnborough to Scottish Widows and Centurion Properties, giving it £1.8 million of profit over the September valuation.
The park, which contains 152,000 square foot of industrial estate, was acquired as part of Max's deal to buy a portfolio of industrial properties from the receivers of the Industrious Group in August.
However the company said that the park is let at £130 a square foot while the rest of the Industrious portfolio has higher-yielding assets that are let at around £30 a square foot.
Max Property said that, after debt repayment, £7.8 million of cash from the sale will be released for new acquisitions.
Mike Brown of Prestbury Investments LLP, external asset manager for MPG, commented:
"Southwood Business Park is an institutional grade asset. However, at £130 per sq. ft, capital value it is not a natural fit with the remainder of the Industrious portfolio which comprises higher yielding assets averaging just £30 per sq. ft capital value. Scottish Widows and Centurion Properties approached us recently and should be congratulated for the speed with which they carried out this transaction."
Wed, 30th Dec 2009