23 Jun 2010 07:00
23 June 2010
Development Securities PLC acquires serviced office in Croydon
Development Securities Plc, the leading property development and investment company, today announces that it has acquired an office property, Airport House, in London's Croydon, for £7.75 million reflecting an income yield of 5.4% from LPA Receivers appointed on behalf of the Bank of Ireland.
The property comprises a well located serviced office building and DS has appointed a local serviced office operator to run the centre with the aim of re-establishing the building in line with its historic operating performance which would see the income yield rise to over 11%. The iconic building, which suffered under previous management will now immediately be comprehensively internally and externally refurbished . The modernisation budget of £600,000 will enable the income to be first rebuilt to pre- existing levels and then exceeded. Bank of Ireland has provided a debt facility to assist in the acquisition.
The acquisition is the latest in a series of transactions that total circa £150 million to date since the Group raised fresh equity of £100 million in July 2009. It is part of the Directors' continuing strategy to strengthen the Group's investment property portfolio, with opportunities which may, in the longer term, offer modest redevelopment potential.
For further information, please contact:
Michael Marx/Matthew Weiner
Development Securities Plc Tel: 020 7828 4777
Mallika Basu/Lucy Grimble
The Communication Group Plc Tel: 020 7630 1411