RNS Number : 4141A Max Property Group PLC 07 October 2009
Max Property Group Plc
Completion of Industrious acquisition
The Board of Max Property Group Plc is pleased to announce the completion of the acquisition of the Industrious portfolio on 7 October 2009. Two properties have been simultaneously sold for a net cash consideration of £20m reducing the purchase price including all acquisition costs to £227m.
The initial yield on the portfolio on a conventional valuation basis is 12.7% and the 'true' net initial yield after deduction of void costs and all portfolio running costs including the running of the Industrious business is 10.3%.
The portfolio is a high yielding, predominantly freehold portfolio with wide geographic spread and good diversification of tenant risk, acquired from the Receivers of the Industrious Group. The portfolio comprises 85 properties with 1,262 lettable units and 7.34m sq ft of which 1.49m sq ft is currently vacant. The purchase is financed by a £127.7m non recourse loan from Eurohypo AG, with the balance being satisfied from the Group's existing cash resources.
The running yield on equity invested is initially 17%. The Group's free cash immediately after completion amounts to c. £110m.
Further details of the portfolio are set out in the investor presentation posted to the Company's website, www.maxpropertygroup.com, today.
7 October 2009
ENQUIRIES:
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Prestbury Investments LLP
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Tel: 020 7647 7647
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Nick Leslau
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Mike Brown
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College Hill
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Tel: 020 7457 2020
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Gareth David
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Morgan Stanley (NOMAD)
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Tel: 020 7425 8000
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Jonathan Lane
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Mark Brooker
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This information is provided by RNS
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