13th Nov 2007 11:00
Mucklow(A.& J.)Group PLC13 November 2007 A & J MUCKLOW GROUP PLC 13 NOVEMBER 2007 INTERIM MANAGEMENT STATEMENT A & J Mucklow Group plc, the Midlands based property REIT, are pleased topublish their first Interim Management Statement, covering the period from 1July 2007 to date, as required by the UK Listing Authority's Disclosure andTransparency Rules. Rupert Mucklow, Chairman commented: We are continuing to make good progress and remain on target for anothersatisfactory year. Despite all the uncertainties in the debt, equity andproperty markets, occupancy levels have been maintained at around 93% and we areexperiencing some good enquiries for our vacant space and new developments. We do not value our property portfolio on a quarterly basis. However, it isevident that property values are falling, due to weaker Investor sentiment,although there still appears to be healthy demand for modern, well letproperties like ours, with few quality investments coming to the market. We acquired a modern industrial investment at the beginning of the financialyear, for £3.7m. The property is located in Leamington Spa, adjacent to ourexisting holding and comprises a 48,000 sq ft building, producing a rent of£0.25m per annum. No other investment or land acquisitions were made during theperiod. The only property disposal has been a 2.3 acre residential site, atMellings Farm,Wigan, which was sold for £2.6m. Both transactions were reported,in my year end statement. We are currently developing sites in Dudley (41,000 sq ft - industrial);Wednesbury (40,000 sq ft - industrial); Worcester (28,000 sq ft - offices) andColeshill (32,000 sq ft - trade park) and starting to generate some goodinterest from occupiers. When completed and fully let, the new developmentsshould add £1.1m per annum to the rent roll. All of our commercial development sites are being actively marketed for pre-letsand I am pleased to report three large transactions that have been signed up inthe last two weeks. Terms have been agreed on the pre-letting of two industrialunits at Yorks Park, Dudley. The buildings will have a combined area of 75,000sq ft and provide rental income of £0.38m per annum. The agreements are subjectto planning, which we hope to obtain in the next two months and startdevelopment early in the New Year. We have also agreed terms, subject to planning, to develop a 128,500 sq ftbespoke building on our site at Torrington Avenue, Coventry. The property willbe let on a 25 year lease on completion of the development at a rent in excessof £1m pa. The site was acquired in November 2006 and a planning applicationwill be submitted later this year. Demolition works are also well advanced at Signal Point, Tyseley, Birmingham,where we have received outline planning consent for a 360,000 sq ft industrialpark. We have recently submitted a detailed planning application for the firsttwo units, totalling 90,000 sq ft, which we hope to start next year. The Group's financial position remains very strong, with net debt of £24m andcurrent gearing at around 9%. This is likely to increase during the year, due toour development programme. It may also rise further if we are able to acquiresome quality investment properties, on attractive yields. Other than stated,there has been no significant change in the Group's financial position duringthe period under review. Providing there is no further downturn in the UK economy, we remain upbeat aboutprospects for the year. For further information contact: Rupert Mucklow Chairman 0121 504 2121 David Wooldridge Finance Director 0121 504 2108 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mucklow (A & J)