4th Jul 2019 12:34
(Alliance News) - McKay Securities PLC made good progress with portfolio refurbishment and development schemes but Brexit uncertainty reduced investment volumes during the quarter ended June 30, Chief Executive Officer Simon Perkins said in his annual general meeting statement on Thursday.
The real estate investment trust focused on London and south east office market said its industrial and logistics sector benefited from rental growth. A lack of supply however, meant that the sector, which represents 16% of its estate, grew at a slower pace in the first quarter.
The firm said that the Brexit stalemate forced potential buyers into caution, which negatively impacted investment market.
Perkins said: "Occupational demand in the south east office sector, which accounts for 54% of our portfolio, by value, has proved resilient despite the continuing political uncertainty."
"Once a Brexit conclusion is reached, stronger economic activity and limited supply, now at a 10-year low, should support rental value growth in this market sector."
The trust said that development schemes have made "positive progress" and a refurbishment of the 12,720 square feet Pegasus 2 building in Crawley, England, is on track for completion in July.
The firm also stated that it ended the quarter with a loan to value ratio of 35%, ahead of the 33% recorded at the end of their last financial year in March.
McKay shares were up 2.2% at 235.00 pence in London on Thursday afternoon.
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