Max Property Group plc Max Property Group plc : Max Property Group Plc announces ÂGBP45m London mid-town acquisition
02 Octubre 2012 - 9:06AM
UK Regulatory
TIDMMAX
Max Property Group
("Max Property")
Max Property Group Plc announces GBP45m London mid-town acquisition
Max Property Group plc ("Max") announces the GBP45.25m purchase of the High
Holborn Estate, from The Holborn Property Unit Trust, comprising nine buildings
making up the whole of a one acre island site fronting High Holborn and Bedford
Row, London. Totalling 150,000 sq ft and let to over 60 tenants on a short term
basis, the current rents passing at c. GBP2.2m pa equate to an average of just GBP15
psf.
Max intends to carry out a rolling refurbishment of the principal office
buildings and to investigate converting the peripheral assets back to their
original residential use.
Contracts have been exchanged unconditionally with completion scheduled for 6
November 2012.
Prior to the acquisition Max has c. GBP90 million of uncommitted cash at its
disposal and has elected to pay cash for the property. It is anticipated that
debt finance will be sought at a later stage as Max's remaining cash is
deployed.
CBRE and Allsops acted on the transaction.
Mike Brown CEO of Prestbury Investments, Max's property advisor, said:
"The High Holborn Estate has been run as an income producing site in recent
years and rental levels have fallen to very low levels, reflecting the tenants'
lack of security of tenure and the absence of any capital investment in the
existing buildings.
"In common with last year's St Katharine Docks purchase, our entry price is low
at just over GBP300 psf and we have similar plans to invest in improving the
existing buildings whilst extending lease maturities and increasing rental
levels. We are very excited to have acquired a London asset with great potential
to create a vibrant community of tenants in newly refurbished, bright,
contemporary office space.
"Having raised GBP211m on flotation in 2009, Max's London assets after completion
of this transaction will have grown to nearly GBP200m, balanced primarily with a
similar amount of high yielding Industrial property."
2 October 2012
ENQUIRIES:
Prestbury Investments LLP Tel: 020 7647 7647
Mike Brown
College Hill Tel: 020 7457 2020
Mike Davies
Helen Tarbet
Kim Peters
Oriel Securities (NOMAD) Tel: 020 7710 7600
Mark Young
Joe Winkley
Gareth Price
About Max Property Group Plc ("Max")
Max is a Jersey resident real estate investment company. Its Board, chaired by
Aubrey Adams, is exclusively advised by Prestbury Investments LLP, which is
owned and managed by a team led by Nick Leslau and Mike Brown.
The Company's strategy is to exploit cyclical weaknesses in the UK real estate
market through opportunistic investment and active management with a view to
realising cash returns for shareholders over an investment cycle of
approximately seven and a half years from its listing in May 2009.
In the 34 months from listing to 31 March 2012, Max's Net Asset Value per share
(measured on an EPRA basis) has risen by 39%.
Max's interim results are due to be announced on 23 November 2012 which will
include an independent valuation of the property assets on 30th September 2012,
updated NAV growth calculations and property weightings.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Max Property Group plc via Thomson Reuters ONE
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