McKay Securities PLC £15.5M PURCHASE OF OFFICE BUILDING IN NEWBURY (5406R)
October 30 2019 - 2:00AM
UK Regulatory
TIDMMCKS
RNS Number : 5406R
McKay Securities PLC
30 October 2019
McKAY SECURITIES PLC ("the Group" or "McKay")
McKAY MAKES GBP15.5M PURCHASE OF HIGH YIELDING, LONG INCOME
OFFICE BUILDING ON NEWBURY BUSINESS PARK
McKay Securities Plc, the only UK REIT specialising entirely in
the London and South East office, industrial and logistics markets,
announces the acquisition of Rivergate, a multi-let office building
fronting Newbury Business Park for GBP15.5 million. The purchase
price reflects a net initial yield of 7.5% prior to adjustment for
the value of letting incentives.
Providing 61,385 sq ft of lettable space over three floors and
generous car parking totaling 323 spaces, the property is fully let
to six occupiers including Capita Business Services, Cavendish
Nuclear and Coffin Mew with a WAULT of 8.8 years, or 6.7 years to
first break. The property has recently benefitted from a
comprehensive refurbishment to the reception, common parts, first
and second floors and the contracted rental income of GBP1.29
million pa represents a low rental value of GBP21.40 psf.
Newbury is an affluent town within Berkshire located
approximately 20 miles west of Reading and four miles from the M4
Motorway. Historically the town has appealed to a range of
occupiers but suffers from a limited supply of modern office space.
McKay, headquartered in Reading, has a long and successful track
record of owning and investing in towns in the Thames Valley and
along the M4 corridor, where it has unique expertise of the local
occupier market.
Commenting on the purchase, Simon Perkins, Chief Executive of
McKay, said:
"Rivergate is one of the best office buildings in Newbury and
has proved its appeal to occupiers with recent lettings all at, or
in excess of, ten years. The building stands in good condition with
limited capex requirements and will provide shareholders with a
high yield and long income. Its low rental level relative to the
wider market and the potential to add area and refurbish the ground
floor provides plenty of scope for future growth, complementing
other value enhancing opportunities across our wider
portfolio."
-Ends-
Date: 30(th) October 2019
For further information, please contact:
McKay Securities Plc FTI Consulting
Simon Perkins, CEO Dido Laurimore, Ellie Sweeney
Giles Salmon, CFO 0203 727 1000
0118 950 2333 mckay@fticonsulting.com
About McKay
McKay Securities Plc is a commercial property investment company
with Real Estate Investment Trust (REIT) status, listed on the main
market of the London Stock Exchange. It specialises in the
development and refurbishment of office, industrial and logistics
buildings within established and proven markets of London and South
East England. The portfolio, which was valued at 31st March 2019 at
GBP482.70 million, comprises 33 properties in strong and
established areas, which deliver diversity in terms of both sector
and location.
www.mckaysecurities.plc.uk
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END
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