17th Jul 2014 08:39
LONDON (Alliance News) - Real estate investment trust Mckay Securities PLC Thursday it has remained active since April, as the improving occupier and investor sentiment it reported in March has held steady.
McKay said its GBP86.7 million capital raising in February provided it with substantial resources for expenditure on acquisitions and portfolio projects to benefit from improving market conditions.
The company, which focuses on office and industrial properties, said it acquired The Mille, Brentford and 9 Greyfriars Road, Reading for a combined fee of GBP26.5 million. It also completed the refurbishment of 66 Wilson Street in Moorgate, while its site in Bracknell has been marketed to let.
Within the existing portfolio, ten lease renewals and six open-market lettings were completed over the period, with a combined contracted rent of GBP1.1 million a year. Mckay said this was 4.8% ahead of March's estimated rental value.
At Crown Square, Woking, which was acquired in January 2014, lease renewals secured rent of GBP240,000 a year, and increased the rental value by 34% to GBP15 per square foot.
Overall, the total occupancy rate across the portfolio reduced slightly to 84.7% compared with 85.9% at the year end. McKay said this was primarily due to vacancies within acquisitions, which provide scope for rental gains from refurbishment and lettings.
Financially, drawn debt increased by GBP29.0 million over the period to GBP66.5 million, due to acquisition and refurbishment expenditure.
Mckay Securities shares were quoted up 0.8% at 223.80 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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