11 May 2011 07:00
A & J Mucklow Group plc
11 May 2011
Interim Management Statement
A&J Mucklow Group Plc, the Midlands based Real Estate Investment Trust, issues its Interim Management Statement covering the period from 31 December 2010 to 9 May 2011.
Rupert Mucklow, Chairman, comments:
Since our half year end, occupancy levels have been maintained at around 92%, while property acquisitions have increased our gross annual rental income by 5.7% to £19.6m.
The number of enquiries for existing and pre-let industrial space has been encouraging. However, the letting market continues to be challenging, as many occupiers are delaying making decisions and it still remains difficult to secure new tenants.
Two further properties were added to our investment portfolio during the period, at a cost of £11.6m. The properties have a combined income of £1.06m per annum and show us a return on cost of around 9%.
We acquired a prime 86,000 sq ft distribution warehouse at Grange Park, Northampton, built in 2005 and located adjacent to junction 15 of the M1 motorway. We also acquired two modern office buildings totalling 31,000 sq ft, with 156 car parking spaces, at Aztec West Business Park, Bristol, close to junction 16 of the M5 motorway.
These acquisitions are in addition to the three investment properties acquired in the previous half year for £11.9m, generating an income of £1.09m per annum.
Following the latest investment acquisitions, our total net borrowings have risen to £71.2m, while net debt to equity gearing has increased to 39%. The Group continues to benefit from a very low cost of borrowing and remains on target for another satisfactory year to 30 June.
Other than stated above, there has been no significant change in the Group's financial position since 31 December 2010.
Contact:
Rupert Mucklow, Chairman 0121 504 2121
David Wooldridge, Finance Director 0121 504 2108