Acquisition of office portfolio


 
TIDMMAX 
 
Max Property Group Plc 
 
Acquisition of office portfolio 
 
Max Property Group Plc ("Max") today announces it has exchanged contracts for 
the acquisition of ten office investments from UBS Triton Property Fund (UBS 
Triton) for  GBP36.5m plus acquisition costs. The transaction is structured as an 
unconditional purchase of nine freehold and one peppercorn leasehold investments 
for a contract price of  GBP35.6m with completion on 5 February, 2010 and the 
purchase of one freehold property at Farnborough for  GBP900,000 conditional on 
confirmation of planning consent for unrestricted office use within a four 
months long stop date. The vendor is placing  GBP5.9m in an escrow account which 
can by drawn by Max against irrecoverable outgoings in respect of vacant 
accommodation up to the end of 2012. 
 
The properties are typically late 1980s air conditioned business parks 
predominantly located in the South East. Triton has been carrying out a rolling 
refurbishment programme with over two thirds of the vacant space now 
refurbished. The 760,000 sqft portfolio produces a rent roll of  GBP5.0m pa and is 
46% vacant by floor area, with a rental value on the vacant space of circa  GBP3.5m 
pa. The net initial yield on the transaction is 12.7%. 
 
The individual assets are: 
Concorde Business Park, Manchester (125,000 sqft in five buildings; peppercorn 
leasehold 105 years unexpired) 
Brooklands Business Campus, Horsham (116,000 sqft in two buildings with consent 
for a further 100,000 sqft) 
Centric MK, Milton Keynes (107,000 sqft) 
Westpoint, Manchester (104,000 sqft) 
Silbury Court, Milton Keynes (77,000 sqft) 
3500-3700 Solent Business Park, Fareham (71,000 sqft in three 
buildings) 
Overbridge Square, Newbury (66,000 sqft in five buildings) 
New Bond House, Bristol (47,000 sqft) 
Aldrin Place, Farnborough (25,000 sqft) 
Workplace, Milton Keynes (27,000sqft) 
 
The total cash requirement for the acquisition is expected to be  GBP38.9m, to be 
met from the Group's cash resources.  Max reported a pro forma cash balance of 
 GBP113m in its interim results statement as at 30 September 2009.  Adjusting for 
this acquisition and for the disposal of Southwood Business Park which was 
announced on 30 December 2009 and which completed on 21 January, 2010, the 
Group's pro forma cash balance is c.  GBP84m and net debt in the Group amounts to 
c. GBP36 million. 
Franc Warwick acted for Max and Tudor Toone acted for UBS Triton. 
 
25  January 2010 
 
 
ENQUIRIES: 
 
  Prestbury Investments LLP   Tel: 020 7647 7647 
 
  Nick Leslau 
 
  Mike Brown 
 
 
 
  College Hill                Tel: 020 7457 2020 
 
  Gareth David 
 
 
 
  Morgan Stanley (NOMAD)      Tel: 020 7425 8000 
 
  Jonathan Lane 
 
  Mark Brooker 
 
 
 
 
 
 
[HUG#1376783]

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