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Commercial Property News
Patrick Vaughan reveals increased London & Stamford dividend and forsees significant opportunities in 2012
In their interim statement today Patrick Vaughan, the respected property veteran and CEO of London & Stamford Property Plc said:
"The outlook for property in the United Kingdom continues to be very uncertain with difficulties within the Eurozone continuing and remain a long way from being resolved. The UK economy also remains stagnant.
However, we strongly believe that there will be significant opportunities in 2012 for those investors with cash and access to debt with the ability to move quickly. Property lenders are unlikely to be able to meet all the demand for refinancings this year and some property investors will be unable to meet loan to value demands as part of their lenders' deleveraging processes."
Vaughan also revealed the L&S will make 32% on its equity investment when it completes the sale of the Triangle Distribution portfolio for £265 million to Blackstone in April, which will put £101 million of new cash in its warchest and free up £150 million of its revolving credit line at Lloyds Banking Group. With a total of £200 million of cash the firepower will be around £800 million.
Vaughan added: "We are well positioned to take up opportunities in 2012, which we believe will allow the Company to continue its progressive dividend policy which resulted in the payment of an increased 3.5p interim dividend on 21 December 2011 in respect of this financial year."
The stake invested in Meadowhall Shopping Centre, Sheffield, continued to perform well despite recent administrations. There is a strong demand from new tenants for space; since October, 17 new leases have exchanged. Both footfall and stores sales were up over the year.
L&S has also continued to develop young professional living accomodation in London, selling some it has developed, but currently letting 368 units on ASTs.
Shares in London & Stamford Property closed last night at 106.7p valuing the firm at £582 million.
"The outlook for property in the United Kingdom continues to be very uncertain with difficulties within the Eurozone continuing and remain a long way from being resolved. The UK economy also remains stagnant.
However, we strongly believe that there will be significant opportunities in 2012 for those investors with cash and access to debt with the ability to move quickly. Property lenders are unlikely to be able to meet all the demand for refinancings this year and some property investors will be unable to meet loan to value demands as part of their lenders' deleveraging processes."
Vaughan also revealed the L&S will make 32% on its equity investment when it completes the sale of the Triangle Distribution portfolio for £265 million to Blackstone in April, which will put £101 million of new cash in its warchest and free up £150 million of its revolving credit line at Lloyds Banking Group. With a total of £200 million of cash the firepower will be around £800 million.
Vaughan added: "We are well positioned to take up opportunities in 2012, which we believe will allow the Company to continue its progressive dividend policy which resulted in the payment of an increased 3.5p interim dividend on 21 December 2011 in respect of this financial year."
The stake invested in Meadowhall Shopping Centre, Sheffield, continued to perform well despite recent administrations. There is a strong demand from new tenants for space; since October, 17 new leases have exchanged. Both footfall and stores sales were up over the year.
L&S has also continued to develop young professional living accomodation in London, selling some it has developed, but currently letting 368 units on ASTs.
Shares in London & Stamford Property closed last night at 106.7p valuing the firm at £582 million.
Thu, 26th Jan 2012