Stockley looks convincing
It is still only just over two years since Stockley began trading and it is clear from the report and accounts for the year to last November 30 that considerable progress has been made since its inception — formed to buy out Trust Securities, the company headed by Peter Jones which controlled the massive Stockley Park development near Heathrow Airport.
Stockley turned in pre-tax profits of some £3.8m for the year, against £88,000 for the previous period. Rental income rose from £414,000 to almost £2m, and a further £2m came from the sale of properties, the bulk of it from the disposal of the RAF Club in Piccadilly and the sale of a Chiswick property.
Dividends from Stock Conversion, where the group owns 26.5% of the equity, amounted to £2.1m, giving total gross income for the year of £6.2m against £682,000 in 1984. Profits were slightly lower than most analysts expected, largely owing to the lower-than-expected contribution from Stock Conversion.
Chairman Ron Peat has nothing to say in his statement about the position of Stockley over its discussions with Stock Conversion, but Michael Broke, the chief executive, said that friendly talks with Stock Conversion aimed at resolving the future relationship between the two companies are continuing.
Stockley has put together a substantial portfolio of development sites over the past two years, including Paternoster Square in the shadow of St Paul’s Cathedral. It was acquired since the year-end for £66.25m by a consortium led by Stockley: the partners are almost the same as in the Unilever project in Salisbury Square — British Land, Barclays Bank Pension Fund and Unilever Pension Fund — and the consortium intends to seek permission for a major redevelopment of the site.
Stockley Park is by far the largest investment so far and it will not be long before substantial lettings are confirmed on the first phase of three buildings. One is already let and negotiations are under way for the remaining two buildings, at rents believed to be of the order of £13.50 per sq ft.
