Borrowing increases to £71m for portfolio growth at Mucklow
NET borrowings have risen at Black Country property development and investment company A&J Mucklow, it reports today.
The Halesowen family-run firm says that, following its latest investment acquisitions, borrowing has risen to £71.2m while net debt to equity gearing has increased to 39%.
In an interim management statement for the period since the end of 2010, Mucklow said two properties had been added to its portfolio at a cost of £11.6m.
The properties – a 86,000 sq ft warehouse in Northampton and two office buildings totalling 31,000 sq ft in Bristol – have a combined income of £1.06m per year providing a return on cost of around 9%.
Chairman Robert Mucklow said: “These acquisitions are in addition to the three investment properties acquired in the previous half year for £11.9m, generating an income of £1.09m per annum.
“The group continues to benefit from a very low cost of borrowing and remains on target for another satisfactory year to June 30.
“Other than stated, there has been no significant change in the group’s financial position since December 31.”
The statement said occupancy levels among Mucklow’s portfolio were around 92% while property acquisitions increased its gross annual rental income by 5.7% to £19.6m.
The number of enquiries for existing and pre-let industrial space had been “encouraging”, it added, while the letting market continued to be challenging.
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