A real estate investment trust specialising in the South East and London office and industrial markets has shed two of its assets to allow it “to invest in future growth opportunities”.
McKay Securities says both sales, with a combined value of £3.73m, were completed before its financial year ended on 31 March. In a statement the company said the profits will be reinvested in its ongoing programme of portfolio improvement projects, its large scale development programme and potential new acquisitions.
The largest disposal was Waterman’s Court at Staines-upon-Thames. The 10,770 sq ft office property was McKay’s final holding in Lotus Park, which it refurbished before selling the majority of space in 2009. An un-named private property company paid £2.03m for Waterman’s Court, which is currently vacant.
The second property was Access House at Newbury. McKay got £1.7m for the 17,040 sq ft office building — more than 25 per cent above the guide price — after obtaining planning permission to convert it to residential use. Originally purchased in 1998, mobile provider Vodafone had occupied the offices until its lease expired.
“These are both properties below our preferred lot size, where recent initiatives have helped secure the value realised by disposal,” explained Simon Perkins, managing director of McKay Securities, who added: “The proceeds will be recycled and reinvested into larger portfolio opportunities where we can see encouraging potential for growth, including our programme of current and pipeline development projects.”
McKay currently has 37 properties in its portfolio valued at more than £254m. Seventy-eight per cent are offices, with the majority located in the south east of England, 19 per cent are industrial stock and three per cent within the housing sector.
Its three biggest assets, all valued at over £15m, are south London’s 58,690 sq ft Wimbledon Gate office building, The Mille a 96,650 sq ft office tower at Brentford, and Great Brighams Mead an 84,840 sq ft Reading office development.
