Central London specialist, the Benchmark Group, is reaping the rewards of its recent £200m spending spree with interim results showing net rental income of £10.3, (£2.4m) and pre tax profits of £8.7m (£1.2m) in the six months to December.
Joint md of the Far Eastern-backed company, Nigel Kempner, says more purchases could be on the cards, but he is also looking to dispose of rack-rented properties which the company has already “matured” and which have “less exciting rental growth prospects.” Sales contributed £387,000 in the half year under review.
The addition of 11 properties from Friends Provident; Chelsfield’s Wool House in Carlton Gardens, now renamed Number 5; a 48 building Belgravia portfolio bought from Capital & Counties; and 18 investments acquired from GE Capital have taken Benchmark’s investment and trading portfolio to around £400m.
The company’s net assets increased to 197.3p (189.3p) per share at the interim stage, before a revaluation of existing holdings. Earnings per share are 5.6p from 3p following the fourfold increase in rental income.
Kempner is now focusing on his “active development programme”. It includes the Number 5, Carlton Gardens office and residential scheme due for completion in Autumn 1999 and the conversion of Rivermill House in Pimlico SW1 from offices to residential. Conversions and refurbishments in Bishopsgate, EC2, Ibex House the Minories EC3 and at 34 Brook Street and 1-4 South Molton Street are all now partially let to restuarant, retail and leisure operators at ground floor level with offers in on much of the office space above.
In addition Kempner has recently bought freehold and leasehold interests in four neighbouring properties in Grosvenor Street and Brook’s Mews, W1 which he intends to refurbish and rebuild behind existing facades to create at least18,500 sq ft of new office space.
EGi News 12/03/98
