McKay Securities: Letting Market Challenging, Pickup In C London

22nd Jul 2010 07:29

LONDON (Dow Jones)--McKay Securities PLC (MCKS.LN), a specialist South East real estate investment trust, said Thursday that as reported in June, the letting market remains challenging but the pick up in occupier enquiries referred to at that time for Group properties available to let has been sustained. MAIN FACTS: -Pickup in demand seen initially in central London. -During the quarter there has been more evidence of enquiries converting into lettings in the Group's markets outside London. -Rental values are reaching a floor in many centers, but letting incentives remain generous as tenants continue to be cost conscious. -Despite the recent pick up in letting transactions, take up remains well below the five year average. -In the South East office market, which accounts for 43% of the Group's portfolio by value, the combination of lease events, building obsolescence and rental values at or close to a rebased level should contribute to an improvement in letting activity. -Pace of improvement will remain dependent on confidence regarding overall economic recovery. -Potential investment opportunities continue to be monitored and analysed; Group will look to invest funds from existing facilities in properties with growth prospects where pricing is more reflective of rebased rents and re-letting prospects. -Total loan facilities available to the Group remain unchanged at GBP185 million. -Net debt totaled GBP88.81 million compared (31st March 2010 - GBP88.96 million) giving rise to headroom of GBP96.19 million and a loan to value ratio of 43%. -Group has no near term refinancing risk as facilities totaling GBP155 million extend to 2016 and beyond. -Shares closed Wednesday at 132.5 pence valuing the company at GBP60.68 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 22, 2010 02:29 ET (06:29 GMT)