McKay Securities PLC FURTHER PORTFOLIO REVERSION UNLOCKED AT PROSPERO (7052J)

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RNS Number : 7052J

McKay Securities PLC

04 April 2018

McKAY SECURITIES PLC ("the Group" or "McKay")

McKAY UNLOCKS FURTHER PORTFOLIO REVERSION WITH LATEST LETTING AT PROSPERO, REDHILL

McKay Securities PLC, the only UK REIT specialising exclusively in the London and South East office and industrial markets, has let the second floor of Prospero, its 50,370 sq ft office development in Redhill, to specialist savings and lending bank, Shawbrook Bank Limited ("Shawbrook"), taking the building to 91% let.

Shawbrook has agreed to a 10 year lease (without break) of the 13,915 sq ft floor, at a rental level consistent with recent lettings. Shawbrook is relocating from existing premises in Dorking, Surrey, and Croydon having been attracted by Prospero's large, bright, and flexible modern floorplates.

Shawbrook is the fourth tenant attracted by the high quality of Prospero; Redhill's first new office development in over 10 years. Earlier lettings were completed with Morrisons Solicitors, The Plan Group and NUS Consulting, while marketing of the balance of the first floor (4,100 sq ft), the property's only remaining vacancy, continues to attract encouraging interest.

Commenting on the letting, Simon Perkins, CEO of McKay, said:

"Prospero is now 91% let to a diverse range of high quality businesses attracted by modern, environmentally-conscious and tenant-focused office space. This is something that hasn't been available in Redhill for over a decade and provides local and regional companies with an alternative to the increasingly dated buildings elsewhere in the town. Furthermore, the long-term commitments agreed with all Prospero's occupiers - at rents above ERVs - demonstrates the resilience of the local market.

"We look forward to building on this success and updating the market when Prospero, and other McKay projects, achieve full occupancy, as we continue to prioritise the delivery of attractive shareholder returns through realising the significant reversionary potential of our portfolio."

Steve Patemen, CEO at Shawbrook, commented:

"We are a growing bank and firmly believe that the best way to support small and medium-sized businesses across the country is by being physically present within the regional economies in which they operate. Prospero is a fantastic building and its location will give us a great base for our Regional Business Centre, as well as some key Specialist Asset Finance teams and supporting functions"

McKay acquired the 1.2 acre Prospero site off-market for GBP2.3 million in 2013 and subsequently sold surplus land to a residential developer. Following redevelopment, the Grade A four storey office building was completed at the end of 2016. Prospero has achieved BREEAM "Excellent" and EPC 'A' ratings due to its sustainable design, ensuring running costs are kept to a minimum.

Located in the heart of Redhill town centre, Prospero is just a seven minute walk from Redhill railway station which provides direct access to London Bridge, London Victoria and Gatwick Airport. It is equally conveniently situated close to the M25.

BNP Paribas and Altus acted on behalf of McKay and JLL acted on behalf of Shawbrook.

- ENDS -

 
 Date: 4(th) April 2018 
 
 
 For further information 
  please contact: 
 
 McKay Securities PLC       FTI Consulting 
 Simon Perkins, CEO         Dido Laurimore, Tom Gough, 
                             Ellie Sweeney 
 Giles Salmon, CFO          020 3727 1000 
 01189 502333 
 

About McKay Securities

McKay Securities PLC is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange. It specialises in the development and refurbishment of good quality office and industrial buildings within established and proven markets of London and South East England. The portfolio, which was valued in excess of GBP450 million in September 2017, comprises 36 properties in strong and established areas which deliver diversity in terms of both sector and location.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 04, 2018 02:00 ET (06:00 GMT)