Industrial land revival boosts A & J Mucklow
Property group A & J Mucklow says the West Midlands industrial property market has started to gain some momentum with signs of improvement in confidence.
In its results for the last six months of 2013 it said there had been an increase in the number of investors looking to buy modern industrial and commercial properties, but a limited supply of quality stock was available.
The Halesowen-based group's pre-tax profits were up from £8.1m for the same period in 2012 to £14.2m, although underlying pre-tax profit – which excludes revaluations and profits from sales – slipped from £6.9m to £6.3m.
Chairman Rupert Mucklow said: "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.
"Economic forecasts are certainly looking better and business confidence is improving. We intend to continue our strategy of investing in quality industrial and commercial properties in the Midlands, with attractive long term growth prospects and we anticipate another satisfactory performance in the second half year."
The group's gross Rental income for the half year was up from £10.2m to £10.5m and its net asset value rose from £182.5m to £190.3m. The value of the group's property portfolio was also up from £262.7m to £278.5m.
A & J Mucklow also reduced its vacancy rate from 6.7% to 6.2% and agreed terms on a large pre-let development.
Mr Mucklow said there had been a steady rise in the number of active letting enquiries for industrial space in the Midlands.
The group bought a modern 62,000 sq ft industrial unit with an acre of expansion land in Halesowen for £3.66m in September and three modern retail units with car parkingin Kings Heath, Birmingham in December.
It has two industrial sites ready for development: Signal Point, Tyseley, Birmingham and Apex Park, Worcester.
