Property firm Mucklow enjoys 38% profit hike
HALESOWEN developer and land owner A&J Mucklow has seen its profit increase by 38.1% over a 12 month period.
Delivering its annual results for the year to June 30, the firm revealed a statutory pre-tax profit of £56.2m (2014: £40.7m).
Mucklow has also seen its vacancy rate drop from 6.7% to 5.4% and its portfolio value increase from £298.9m to £349.7m.
Chairman Rupert Mucklow said a shortage of quality industrial space has enabled the firm to start increasing rental levels on its vacant properties and when negotiating lease renewals. Property values have also continued to rise on the back of strong investor demand and evidence of rental growth.
“Our investment portfolio is just starting to benefit from rental growth and should continue to perform well over the next few years as we continue to renew and re-let space at higher rental levels, as leases expire,” he said.
“We are not expecting any significant changes in the Midlands property market over the next 12 months and remain optimistic about our future prospects.”
Mucklow completed 31 new lettings and 23 lease renewals during the year, representing 12.8% of its investment portfolio by area.
Two investment properties were acquired during the year at a total cost of £4.2m. It bought a 28,000 sq ft industrial unit at Meridian Business Park, Leicester and a 30,192 sq ft industrial unit at Nexus Point, Birmingham. The combined rental income for the two properties is currently £0.24m pa (£4.14 psf), with an estimated rental value of £0.34m pa (£5.75 psf).
Mucklow has also acquired a small investment property for £2.8m since the year end, and says it is still actively looking to acquire further investment properties, but it has become more difficult to source suitably priced opportunities.
“As a consequence, our focus has now shifted towards pre-let development, where we are able to create our own investment properties, on more attractive returns,” Mucklow said.
Mucklow completed its 116,000 sq ft development for Worcester Bosch at Apex Park, Worcester in December 2014, which is now on rent.
But its proposed 350,000 sq ft industrial development at Mucklow Business Park, Tyseley, Birmingham, has been delayed, while it waits for Birmingham City Council to startconstruction on a new link road alongside the 20 acre site.
“We hope to start marketing for pre-let buildings later this year and are looking for further development opportunities,” it said.
