5th Nov 2013 12:05
LONDON (Alliance News) - McKay Securities PLC, the Real Estate Investment Trust specialising in South East and central London office and industrial property, Tuesday said it has made several lettings across its portfolio.
The real estate investment trust said it has pre-let 10,765 square feet, increasing occupancy to 78% from 30% at the start of the year at improved rental values, at the Switchback Office Park in Maidenhead as it has pre-let two more of the buildings there. After letting out buildings 1, 2, 3 and 4, McKay is speculatively refurbishing building 6, with plans to start early in the New Year.
The contracted rental income achieved on the two pre-let buildings totalled GBP155,550 per annum, or GBP14.50 per square foot.
It will aim to let out the 4,570 square foot building 6 at over GBP20.0 per square foot.
At the McKay Trading Estate, the existing tenant of Units 7 and 9, Global Cargo Services Ltd, has taken new five year leases of both units and expanded by taking Unit 8 as well. The estate consists of nine units, totalling 74,270 square feet, at Poyle, near Terminal 5 of Heathrow Airport.
The rent payable by Global has increased to GBP250,158 per annum from GBP160,620, with all three leases on five year terms. One unit of 7,000 square feet remains vacant on the estate. The estate is popular with cargo freight handlers because its location gives it easy access to the airport and the motorway network.
"These new lettings correspond with a notable improvement in sentiment within our core South East markets. Occupier take up of floor space within the office market in particular will be comfortably the highest since 2007," Simon Perkins, managing director, said in a statement.
"With limited development and increasing obsolescence, the choice of quality buildings for tenants is becoming increasingly constrained. As demonstrated with both these lettings, this is contributing to rental growth which has already begun to have a positive impact on capital values," McKay added.
McKay Securities shares were Tuesday quoted at 192.50 pence, up 2.7%.
By Samuel Agini; [email protected]; @samuelagini
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