Acquisition
28 Juni 2011 - 8:02AM
UK Regulatory
TIDMMAX
Max Property Group Plc
GBP156m Central London acquisition: St. Katharine Docks
A joint venture between Max Property Group Plc ("Max") and Newmarket Property
Holdings Limited, a subsidiary of an overseas family trust, has today exchanged
unconditional contracts to purchase the freehold St Katharine Docks (the
"Estate") from St Katharine's Investments LP, for a cash consideration of GBP156.3
million, net of acquisition costs, equating to a capital value of GBP330 per
square foot.
Situated on the Thames, immediately adjacent to Tower Bridge and the Tower of
London, the Estate comprises 500,000 sq ft of offices, restaurants and shops,
together with Central London's only marina which extends to a total of 10
acres and comprises 160 berths.
The Estate is let to a wide range of tenants, currently generating an annual
rent roll of GBP12.6 million, and with a vacancy rate of 12% which gives the
potential to improve facilities and tenant mix through a rolling refurbishment
programme.
One of the Estate's main buildings, Commodity Quay, comprises 130,000 sq ft of
offices with 80% occupancy. It is likely to fall vacant next year, providing an
opportunity for a comprehensive refurbishment scheme, to be launched into
the lettings market in 2013, ahead of the development pipeline elsewhere in the
City. The balance of the portfolio comprises five buildings with 60 tenants and
76% of the total rent roll.
Max is investing 60% of the equity in the joint venture, with the private family
trust fund investing 40%. In addition, Max will receive an incentive fee on
realisation equating to 20% of surpluses on the trust's investment once returns
on equity invested in the joint venture exceed 11% p.a..
Terms have been agreed with Eurohypo AG to provide non-recourse debt of up
to 55% of the purchase price, and completion is scheduled to occur on or before
8 August. The purchase increases Max's share of gross assets to GBP412m and net
gearing to 33%. Following the acquisition, Max will have GBP35m of uncommitted
cash for future investments remaining from the initial GBP211m raised in May 2009.
Nick Leslau, Chairman of Prestbury Investments, Max's property manager comments:
"St Katharine Docks is one of London's jewels, providing a stunning waterside
environment, enhanced by the magnificent backdrop of Tower Bridge and the Tower
of London. It is difficult to imagine a more beautiful place to work and live in
Central London and it will be our privilege to enhance the experience of such an
important landmark, whilst simultaneously delivering attractive returns for our
shareholders."
28 June 2011
ENQUIRIES:
Prestbury Investments LLP Tel: 020 7647 7647
Nick Leslau
Mike Brown
College Hill Tel: 020 7457 2020
Gareth David
Morgan Stanley (NOMAD) Tel: 020 7425 8000
Edward Knight
Oriel Securities (Joint Broker) Tel: 020 7710 7600
Mark Young
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
[HUG#1526468]
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