Mucklow (A & J) Regulatory News (MKLW)

A & J MUCKLOW GROUP PLC

Interim Management Statement

12 November 2013

A & J Mucklow Group, the Midlands based Real Estate Investment Trust, announces its Interim Management Statement for the period from 1 July 2013 to 11 November 2013, to coincide with its Annual General Meeting this morning.

Rupert Mucklow, Chairman, will comment:

The Midlands industrial property market has continued to show signs of improvement during the first four months of our financial year.

There has been a steady rise in the number of active letting enquiries, which has resulted in our vacancy rate reducing from 6.7% to 6.2%.

Business confidence across the Midlands appears to be gaining momentum on the back of better economic forecasts and success in the manufacturing and automotive industries.

We believe rental levels on prime and good secondary industrial properties are poised to grow helped by an increase in occupier demand, limited available stock and the continued decline in letting incentives.

The regional investment market has also picked up since 1 July 2013, with a number of industrial transactions having been completed, at much higher values than expected.

Investor appetite for quality industrial property remains strong, due to the high expectations of rental growth and capital appreciation.

One investment property was acquired during the period for £3.66m, producing a rental income of £0.34m per annum. The property is located in Halesowen, West Midlands and comprises a modern 62,000 sq ft industrial unit with expansion land.

We are also starting to see some renewed interest in pre-let development from occupiers looking to expand.

Terms have been agreed in principle with an existing tenant, Worcester Bosch Group, to build them a new 115,000 sq ft distribution warehouse at Apex Park, Worcester. The deal is subject to planning and conditional on us taking back their current unit of 50,000 sq ft on completion of the development.

A planning application will be submitted shortly. If successful, the new property would be operational by December 2014, at an initial rent of £0.72m per annum.

Our total net borrowings at 31 October 2013 were £77.0m, while undrawn bank facilities totalled £30.5m. Debt to equity gearing remained at 41% and loan to value at 29%.

Other than stated above, there has been no significant change in the company's financial position since 30 June 2013.

 Contact:

Rupert Mucklow, Chairman

David Wooldridge, Finance Director

0121 550 1841