McKay Securities PLC DISPOSAL OF THEALE OFFICE ASSET TO OWNER OCCUPIER (3811A)
29 May 2019 - 4:00PM
UK Regulatory
TIDMMCKS
RNS Number : 3811A
McKay Securities PLC
29 May 2019
McKAY SECURITIES PLC ("the Group" or "McKay")
DISPOSAL OF THEALE OFFICE ASSET TO OWNER OCCUPIER
McKay Securities Plc, the only UK REIT specialising entirely in
the London and South East office, industrial and logistics markets,
announces that it has exchanged contracts to sell Station Plaza, a
freehold office asset in Theale, Berkshire for GBP8.2 million. The
sale is conditional on vacant possession on expiry of the current
lease at the end of July 2019.
Station Plaza, which consists of three office buildings
totalling 41,420 sq ft, was acquired by McKay in 2014 with a
passing rent of GBP0.90 million pa (GBP21.50 psf) from a 20-year
lease across all three buildings, generating a 10.1% income yield.
A number of asset management options had been worked up for
implementation on lease expiry, including a comprehensive office
refurbishment. However, the sale to an owner occupier delivers the
anticipated refurbishment profit, at a price which is significantly
ahead of book value as at 31(st) March 2019. The sale proceeds will
be used for reinvestment into new higher-growth opportunities,
through either acquisition, development or asset management
initiatives.
Commenting on the sale, Simon Perkins, Chief Executive of McKay,
said:
"Station Plaza has served us well with a double digit income
yield from income of GBP0.90 million pa since acquisition in 2014,
and we are now recouping our purchase price with no capex. Having
carefully considered refurbishment proposals to maximize the value
of this asset on lease expiry in July, we are confident that the
sale price, which is significantly ahead of book value, delivers
the optimal result. Added to our recent refinancing, the proceeds
from this sale will be put towards our active portfolio
refurbishment and development programme as well as new
acquisitions."
-Ends-
Date: 29(th) May 2019
For further information, please contact:
McKay Securities PLC FTI Consulting
Simon Perkins, CEO Dido Laurimore, Ellie Sweeney
Giles Salmon, CFO 0203 727 1000
0118 950 2333 mckay@fticonsulting.com
About McKay
McKay Securities Plc is a commercial property investment company
with Real Estate Investment Trust (REIT) status, listed on the main
market of the London Stock Exchange. It specialises in the
development and refurbishment of office, industrial and logistics
buildings within established and proven markets of London and South
East England. The portfolio, which was valued at 31st March 2019 at
GBP482.70 million, comprises 33 properties in strong and
established areas, which deliver diversity in terms of both sector
and location.
www.mckaysecurities.plc.uk
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END
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