Mucklow hails a “turning point” in the property cycle
HALESOWEN-based developer and property investor A&J Mucklow Group has seen its vacancy rate decrease and its portfolio value increase in the six months to December 31.
Its vacancy rate was 6.2% compared to 6.7% at the end of June while its portfolio value was £278.5m compared to £262.7m at the end of June.
Statutory pre-tax profit was up from £8.1m at the end of December 2012 to £14.2m.
And with demand for industrial property from occupiers and investors on the increase, the firm believes we may have reached a turning point in the property cycle.
Chairman Rupert Mucklow said: “I am pleased to report encouraging signs of improvement in confidence and activity within the Midlands industrial property market during the first six months of our financial year, resulting in an increase in pre-tax profit and net asset value per share for the group.
“The key highlights during the period were: reducing our vacancy rate from 6.7% to 6.2%, agreeing terms on a large pre-let development, acquiring two further investment properties and a 2.8% uplift in the value of our property portfolio.”
Mucklow added that over the last six months there has been a steady rise in the number of active letting enquiries for industrial space in the Midlands with very little choice available for occupiers.
“As a consequence, typical lease incentives have reduced from 12-18 months to three to nine months for a five year term; in some locations rental levels have started to increase,” he said.
Mucklow added that the regional investment market has started to gain some momentum.
“There has been an increase in the number of investors looking to buy modern industrial and commercial properties, with a limited supply of quality stock available.
“It would appear that we may have reached a turning point in the property cycle during the first half year, with strengthening occupational demand outstripping supply and a growing appetite from investors, pushing up property values.”
The firm currently has two industrial sites ready for development: Signal Point, Tyseley, Birmingham (20 acres) and Apex Park, Worcester (six acres).
