Property investor buoyed by Midlands market

Rupert Mucklow, chairman, A&J Mucklow Group

Property group A & J Mucklow is convinced its firm foundations and focus on the industrial sector in the Midlands puts it in a good position for any looming economic problems.

The limited supply of stock is strengthening the rationale for pre-let developments across the region, it said. Mucklow is seeing greater interest from potential occupiers at its two industrial sites at Tyseley, Birmingham and i54 Wolverhampton.

“We are currently in a very good position, benefiting from low gearing, significant cash resources and a heavy weighting towards Midlands industrial property,” chairman Ruper Mucklow will tell the group’s AGM later today.

“Nevertheless, we remain mindful that circumstances can change rapidly, particularly with Brexit looming. We are, however, confident of our ability to manage and protect the investment portfolio through different phases of the property cycle and we remain positive about our prospects for the full year.”

The property investor sold the Bull Ring Trading Estate, in Digbeth, for £13m last month. The value was two-and-a-half times the previous valuation for the 3.4 acre site, which will be vacated next year by the main tenant.

Mucklow will be taking back a 110,000 sq ft warehouse in Worcester next month, which is expected to increase its void rate at the group’s financial half-year above its current 4.2%.

It has agreed a number of lease renewals and extensions have been agreed since July, including a 29,500 sq ft retail warehouse let to Dunelm for 15 years and a 41,500 sq ft warehouse let to Safestore for a further 25 years.

Refurbishments and developments are progressing well, with its work at Trinity Central, close to Birmingham International railway station, “starting to generate some good occupier interest”. Separately, its 44,250 sq ft pre-let industrial building at i54 Wolverhampton is due to complete in February 2018.

Despite some recent volatility in its share price, the group is trading near the top end of the range it has been in for the last three years, with a market value of around £330m.

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