McKay Securities PLC Disposal of Pinehurst Park, Farnborough (0102X)
February 16 2017 - 2:00AM
UK Regulatory
TIDMMCKS
RNS Number : 0102X
McKay Securities PLC
16 February 2017
McKAY SECURITIES PLC ("McKay")
DISPOSAL OF PINEHURST PARK, FARNBOROUGH
McKay Securities PLC, the Real Estate Investment Trust (REIT)
specialising entirely in the South East and London Office and
industrial markets, is pleased to announce it has exchanged
contracts for the unconditional disposal of the freehold of its
remaining interest at Pinehurst Park, in central Farnborough to
Pinehurst Investments Ltd (a subsidiary of Shaviram Developments
Ltd), for GBP5.88 million. The purchaser has paid a GBP1.00 million
non-returnable deposit, and McKay will retain income through to
completion on 28(th) November 2017.
The sale will generate a net surplus of 11.5% over book value
(30(th) September 2016).
McKay purchased Pinehurst Park in May 2012 for GBP3.50 million.
In April 2013, it disposed of the former Convent building fronting
the site for GBP1.24 million having obtained planning consent for
conversion from office to residential use. This disposal of the
balance of the site consists of a 50,200 sq ft office building
constructed in 1991, let to IBM until 28(th) February 2018 at a
rent of GBP0.75 million pa. On completion of this sale, McKay's net
disposal proceeds will total GBP6.36 million, representing a 71.9%
return on cost. In addition, McKay will have received rental income
totalling GBP3.34 million since acquisition.
The purchaser proposes a residential development.
Simon Perkins, CEO of McKay commented:
"When we purchased the property from the Receivers in 2012, we
identified the potential to add value by pursuing a change of use
to residential, whilst benefitting from a high income yield.
This has proven to be a highly successful strategy, and disposal
proceeds have exceeded our expectations. This sale will deliver a
significant surplus to book value, and enable retention of income
through to completion.
On completion, total sale proceeds will be nearly double the
price we paid for the property, which in any event is virtually
covered by the rental income we have received.
Sale proceeds will be reinvested into future acquisitions and
other refurbishment and development projects which continue to add
value and improve our portfolio."
- ends -
Date: 16(th) February 2017
For further information, Media enquiries:
please contact:
McKay Securities PLC Capital Access Group
Simon Perkins, CEO Scott Fulton
Giles Salmon, CFO 020 3763 3400
0118 950 2333
This information is provided by RNS
The company news service from the London Stock Exchange
END
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