Leatherhead Acquisition

ACQUISITION OF ASHCOMBE HOUSE, LEATHERHEAD

McKay Securities PLC, the Real Estate Investment Trust specialising in South East and London office and industrial property, is pleased to announce the freehold acquisition of Ashcombe House, Leatherhead from a private investor for £4.36 million, representing an initial yield of 7.4%.

Ashcombe House is an office property comprising ground and two upper floors totalling 17,340 sq ft. It has a parking ratio of one car space to every 361 sq ft, which is generous for a town centre location. The building was constructed in 1984 and refurbished to modern standards in 2007. It occupies a prominent position in the town centre which is an established business location, close to Junction 9 of the M25, with a fast train link to central London.

The building is fully let to four tenants, with an annual rent of £340,415 (£19.63 psf). The weighted average unexpired lease term is 8.8 years (3.8 years including breaks).

Simon Perkins, Managing Director of McKay, commented:

" This is an attractive office building in one of the main commercial centres of the southern M25 office market. The property has been let during the economic downturn at low levels. We are confident that the building provides scope for rental growth with active management in an improving occupier market.

Following our successful capital raise last month of £87 million, we are planning on making a number of acquisitions to add to our existing portfolio (which currently totals £236 million). This is our first purchase since the capital raise and we continue to target further properties that offer the potential to grow rental income and capital value."

Colliers International acted for McKay Securities PLC. BNP Paribas acted for the vendor.

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Date: 18th March 2014

For further information please contact:

McKay Securities PLC Broker Profile

Simon Perkins, Managing Director Simon Courtenay

Giles Salmon, Finance Director Tamsin Shephard

0118 950 2333 020 7448 3244