Mucklow makes steady progress

HALESOWEN-based developer and investor A&J Mucklow Group has reported a decent start to the year.

In an interim management statement to the London Stock Exchange covering the period from the start of the year to May 13, the firm said its occupancy rate has improved marginally – from 93.5% to 94% – with a further 1.5% of vacant space currently under offer.

It said the Midlands industrial occupier market remains patchy, with higher levels of demand in some areas, and for certain types of property.

“This demand, together with a general shortage of quality industrial space and the ability to offer flexible terms to occupiers, has enabled us to continue to attract tenants and reduce our voids,” the firm said.

“We have also successfully negotiated a number of lease extensions during the period, on properties where leases were due to expire over the next 12 months.

“Planning consent has been granted for a data centre at our vacant 40,000 sq ft industrial building in Birmingham, with completion of the sale of the property expected at the end of June.”

Mucklow said it has seen an increase in the number of suitable investment opportunities and is currently pursuing some attractive industrial investments, which will hopefully be acquired by its financial year end.

The firm completed the refinancing of its principal banking facilities with HSBC in March. The new facilities are for a period of five years and comprise a £44m revolving credit facility, £20m term loan and £1m overdraft.

This follows the completion of the new £20m, ten year term loan with Lloyds TSB Bank in November 2012.

Mucklow’s total net borrowings at April 30 were £68.1m.