MCKS.L Regulatory News (MCKS)

24 Jun 2005 14:58

McKay Securities PLC24 June 2005 PRESS RELEASE McKAY SECURITIES PLC McKay Securities PLC acquires Lotus Park, Staines McKay Securities PLC is pleased to announce that it has exchanged unconditionalcontracts to purchase Lotus Park, Staines for £27,650,000 from a private clientof Vail Williams. Lotus Park consists of four high quality, two storey office buildingsconstructed in 1990, totalling 77,126 sq ft with 326 car parking spaces,situated in a prominent Thameside location at the eastern end of The Causeway,Staines The buildings are let to IBM UK Ltd on FRI terms until March 2013 at a currentnet rental income of £1,981,250 per annum. Under the terms of occupation, thisequates to an overall rent of £25 psf, with the next rent review due in March2008. At the passing rent the purchase price reflects an initial yield of 6.8%after allowing for normal acquisition costs. The transaction is being financedfrom existing and increased bank facilities. Simon Perkins, Managing Director of McKay said "this acquisition secures fourprime, well specified buildings with an excellent covenant, in one of the mostpopular centres within the western M25 market; one of our core areas. Theopening of Heathrow's fifth terminal will compliment the locational benefits ofStaines, further improving the encouraging prospects for rental and capitalgrowth. There are also a number of active management opportunities to beexplored with the occupier, and in the future, the potential for additionaloffice floor area and alternative uses. McKay Securities PLC is a commercial property investment company, specialisingin the development and refurbishment of quality buildings within established andemerging growth areas of central London and the South East of England. Contacts Simon PerkinsMcKay Securities PLC0118 950 2333 24th June 2005 This information is provided by RNS The company news service from the London Stock Exchange