11th Oct 2021 14:03
McKay Securities PLC - commercial property investment company - Buys Evergreen Studios, a 17,325 square foot refurbished office property in central Richmond, west London. Pays GBP14.8 million for the property, representing a 5.8% net initial yield. Says the seller of the building, Sheen Lane Developments Ltd, has entered a two-year leaseback for the entire building with rent beginning at GBP92,000 per year. Meanwhile, a marketing campaign begins to sub-let the offices on a floor-by-floor basis. The ground floor has been let, with four floors still to be let, the company adds.
"The purchase of Evergreen Studios adds a prime, fully refurbished office building to our London and South East office portfolio, recycling some of our capital from recent disposals in line with our selective acquisition strategy. The two-year leaseback to the vendor provides us with an attractive yield and income from the outset...With an [loan to value] of 32% at March 31, and headroom of around GBP75 million to existing loan facilities, we continue to explore a range of opportunities to generate shareholder value," says Chief Executive Simon Perkins.
Current stock price: 223.65 pence, up 0.3% on Monday afternoon
Year-to-date change: up 11%
By Scarlett Butler; [email protected]
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