Birkby PLC - Re Expansion Programme
22 Marzo 1999 - 8:36AM
UK Regulatory
RNS No 4352v
BIRKBY PLC
19th March 1999
EXPANDS INDUSTRIAL PROPERTY PORTFOLIO
Birkby plc, the commercial property management group, today announces an
update on the expansion programme for its national network of light industrial
rental units.
A total of over one and a half million sq ft of space has been added to the
network during the current financial year to 31 March 1999, significantly
exceeding the Group's annual acquisition target, set at one million sq ft.
Eleven workspace sites were acquired in recent weeks, for an aggregate
consideration of #5.9 million, adding 423,828 sq ft of space to the Group's
existing seven million sq ft portfolio.
Including the eleven newly acquired sites, Birkby has invested a total of
#21.2 million in acquisitions in the current financial year, having already
acquired 1.1 million sq ft of rental space, for #15.3 million, in the first
half of the year. The total number of workspace and retailspace centres the
Group now operates has risen by 33 to 201.
The eleven sites, listed in the table below, will be integrated within
Birkby's workspace division, which trades as Imex.
Site Square Purchase Current Current
Feet Price Occupancy annualised
licence
fee
Denton Business
Centre, Manchester 102,229 #2,057,000 96% #560,000*
Budget Workspace,
Tyne & Wear (7
sites) 133,000 #1,805,000 87% #283,000
Cotton Street
Business Centre,
Glasgow 36,720 #1,000,000 94% #152,000
Birtley, Tyne &
Wear 124,733 #550,000 Vacant 0
Beckbridge
Industrial Estate,
Normanton, W.
Yorkshire 27,146 #450,000 Vacant 0
TOTAL 423,828 sq ft #5,862,000 *Inclusive of
services
Of the eleven sites, eight are located in the North East, an area where Birkby
has experienced consistently strong demand and where the Group had stated its
intention to expand.
* The Denton site in Manchester, which complements the existing area
portfolio, was acquired from Tameside Metropolitan Borough and comprises 16
individual buildings, sub-divided for a mix of office and industrial use.
The site was purchased for #2.6 million together with 1.2 hectares of
adjoining land, which has been subsequently sold for #600,000, thereby
reducing the aggregate purchase price and enhancing the initial yield.
The acquisition illustrates the Group's ability to work closely with local
authorities for mutual benefit, assisting in regional economic
regeneration.
* The Budget Workspace portfolio, located in the North East, has been
acquired from one of the few private operators in the market place and
comprises seven sites, located in Ashington (3 sites), Swalwell, Dunston,
Sunderland and Seaton Delaval.
* The Cotton Street Business Centre is a well located, fully operational
business centre, which most importantly was a strategic purchase to give us
our first centre in Glasgow. It comprises single and double storey units of
varying sizes, with occupancy levels presently at 94%.
* The Birtley site, near Tyneside in the North East, was formerly the Royal
Ordinance Ammunitions factory and is currently vacant. Following the success
of a similar project in Greenhill, Glasgow, last year, the Group intends to
sub-divide the existing buildings to create 60 workshops and 20 offices.
Work has already commenced and the site is expected to open in August 1999.
* The site at Normanton, West Yorkshire, lies within a development area of
the M62 corridor and comprises seven units. The site has been acquired with
vacant possession on six units and one unit let. Birkby intends to split
these to create 14 units of 1,750 sq ft each. Strong demand is anticipated
due to the current shortage of workshop units in the region and developments
such as the nearby European Rail Terminus.
Commenting on the acquisitions, Chief Executive, Kim Taylor-Smith, said,
"We are delighted with the progress the Group has made during the current
financial year. In particular, we are pleased to have significantly exceeded
our annual acquisition target with the addition of one and a half million sq
ft of space into our property portfolio. Birkby is a high cash generating
business and aided by our strong balance sheet we have been able to make a
number of opportunistic purchases which complement our existing network. With
a modest level of gearing of 56% and facilities of #18 million still available
following our recent acquisitions, we are well poised to develop our national
presence even further and currently have a number of potential sites under
consideration.
"I am also pleased to announce that demand for space remains buoyant. We have
been able to increase occupancy levels at both our new and existing sites. For
the eleven month period to 28 February 1999, turnover in our existing client
base has been higher, at 18.7%, reflecting the current economic climate.
However, we continue to be successful in both replacing these clients and
improving licence fee income. We have increased our cash equivalent occupancy
rate by 0.4% to 87.1%, on a like for like basis, since the half year and we
are on course to achieve our target return on investment. I look forward to
reporting further progress over the coming months."
For further information:
Bill Cran, Chairman, Birkby plc Tel: 01484 545151
Kim Taylor-Smith, Chief Executive, Birkby plc Tel: 0121 778 2233
Katie Tzouliadis, Biddick Associates Tel: 0171 377 6677
END
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