5th Mar 2019 12:12
LONDON (Alliance News) - McKay Securities PLC on Tuesday reported a double digit increase in rents at lease renewals and growth in occupancy levels.
In addition, the UK real estate investment trust said it has exchanged contracts to conditionally dispose of a prime development site in Woking town centre to Watkin Jones PLC. The site has a capacity for about 350 apartments.
The development and construction firm Watkin Jones explained that the site will comprise a purpose-designed build-to-rent scheme in which residents will benefit from high quality accommodation and communal facilities, including a resident's lounge and roof terrace.
The scheme is also expected to include new retail and leisure space. The development is expected to deliver a margin in line with target returns and is targeted for completion in 2024.
In the four months to Monday this week, McKay said it has completed 11 open market lettings with a combines contracted rent of GBP680,000 per year.
The company has also renewed 12 leases with a combined contracted rent of GBP640,000 a year. McKay said these renewals generally benefited from recent refurbishment work as well as rental gains over the last five years.
During the period, portfolio occupancy excluding developments increased to 92.1% from 91.7% reported at the end of September 2018. Contracted rental income rose by 1.4% to GBP27.6 million per year from GBP27.2 million.
"It is pleasing to report positive results from a wide range of asset management and development initiatives, as well as the sale of our large holding in central Woking, despite uncertainty over the outcome of Brexit," said Chief Executive Simon Perkins.
McKay will announce its results for the year to the end of March in May.
Related Shares:
MCKS.LWatkin Jones