Slough passes the billion
Total assets of Slough Estates passed the billion-pound level in 1986, the annual report reveals. Total asset increased from £886m to £1.04bn, including properties of £851m.
Sir Nigel Mobbs, Slough’s chairman, says that the underlying valuation increase for the group last year was 4.9%, the increment reflecting improving rental growth partly offset by weaker investment yields.
Valuation surpluses were recorded in all overseas countries except for Germany. Overall, the increase was 7.6%, reflecting a significant strengthening of value in Australia, France and the US.
Differences in the exchange rates did not materially affect translation.
Slough’s annual report is the usual goldmine of data on the international property market and reflects the information gathered from last year’s construction of 500,000 sq ft of new space and the leasing of 800,000 sq ft of new and existing space, generating new rental income of £3.5m.
It was hardly an easy year in the property market, but Sir Nigel says that for most of the markets there are signs that the threat of excess supply may be lessened in 1987 as some developers find more difficulty in funding their projects.
“There has been a welcome return of interest and confidence in industrial investment. There are clear signs of improved demand in certain areas and hope of good rental growth after what has been a period of relative stagnation.
“Some investors believe that the industrial property market may have more to offer in the immediate future than either retailing, where the consumer boom may be coming to an end, or the office sector, where obsolescence is proving a major factor.”
Slough this week established a £100m commercial paper programme with the help of SG Warburg. The programme has the backing of an A-1 rating from Standard & Poors, making Slough the first UK property company to be given a short-term debt rating.
