McKay Securities reported a fall in interim profits this morning, due to lower receipts from property trading.
The small investor/developer reported pre-tax profits down to £3.538m for the six months to the end of September (1999: £4.085m), although rental income grew from £4.83m to £5.015m. Net asset value per share rose 2p to 246p from the year-end in March, but an interim revaluation was not carried out.
Chairman Iain McKay said the group had acquired £30m of property since February and completed its three main projects at 23 Buckingham Gate, London, SW1, Bartley House, Hook and Great Brighams Mead, Reading. Part of 23 Buckingham Gate has been let, and McKay said he expected lettings soon of the other projects.
He said rents from the completed developments would help profits “move ahead strongly in the next financial year”.
McKay Securities also announced the purchase of three properties totalling £7m. The company has paid Chelsfield £4.5m for 1-2 Castle Lane, off Buckingham Gate, London SW1. Mellersh & Harding acted for McKay Securities, while Michael Elliott and Partners acted for Chelsfield.
It has paid City Site Estates £500,000 for 202 Blackfriars Road. E A Shaw acted for McKay Securities and Catella property Consultants for CitySite Estates.
The company has also purchased a 1ha (2.6-acre) site near Gatwick Airport for £2m from Peel Holdings. The site already has planning consent for an office development of 4,830 sq m (51,991 sq m) and work will start on site next year. Rogers Chapman acted for McKay Securities, and Maxwell Brown for Peel Holdings.
Eric Lloyd, managing director, said: “These acquisitions form part of our strategy of buying properties with good potential for adding value as they are refurbished and redeveloped.”
EGi News 13/12/00
