MCKS.L Regulatory News (MCKS)

9 Mar 2006 09:30

McKay Securities PLC09 March 2006 PRESS RELEASE McKay Securities PLC - Lotus Park Surrender McKay Securities PLC has concluded the surrender of IBM's leasehold interest inrespect of two office buildings at Lotus Park, Staines, for a premium payment toMcKay of £4.6m - equivalent to 51/2 years rent - to terminate the leasesrelating to Lotus 1 (14,760 sq ft) and Lotus 2 (17,933 sq ft) which were due toexpire in March 2013. Commenting on the surrender, Simon Perkins, Managing Director of McKay said "Atthe time of purchase these buildings were not occupied and we had hoped to beable to agree a premium to enable us to upgrade them in order to gain fullbenefit from future growth in this popular location. We will carry out acomprehensive refurbishment this year, and the letting prospects for 2007 lookencouraging with limited Grade A stock in Staines and with Terminal 5 set tomake a significant impact". Savills and Vail Williams have been instructed asletting agents. Lotus Park consists of four two storey office buildings constructed in 1990fronting the eastern end of the Causeway in Staines. McKay acquired the Park in2005 for £28.65m (6.9% yield). The leases in respect of Lotus 3 and 4 (42,925 sqft) remain in place until March 2013. ContactsMcKay Securities PLC - 0118 950 2333Simon Perkins, Managing Director 9th March 2006 This information is provided by RNS The company news service from the London Stock Exchange