MAX Max Prop

 
TIDMMAX 
 
Max Property Group Plc 
 
 GBP156m Central London acquisition: St. Katharine Docks 
 
A joint venture between Max Property Group Plc ("Max") and Newmarket Property 
Holdings Limited, a subsidiary of an overseas family trust, has today exchanged 
unconditional contracts to purchase the freehold St Katharine Docks (the 
"Estate") from St Katharine's Investments LP, for a cash consideration of  GBP156.3 
million, net of acquisition costs, equating to a capital value of  GBP330 per 
square foot. 
 
Situated on the Thames, immediately adjacent to Tower Bridge and the Tower of 
London, the Estate comprises 500,000 sq ft of offices, restaurants and shops, 
together with Central London's only marina which extends to a total of 10 
acres and comprises 160 berths. 
 
The Estate is let to a wide range of tenants, currently generating an annual 
rent roll of  GBP12.6 million, and with a vacancy rate of 12% which gives the 
potential to improve facilities and tenant mix through a rolling refurbishment 
programme. 
 
One of the Estate's main buildings, Commodity Quay, comprises 130,000 sq ft of 
offices with 80% occupancy. It is likely to fall vacant next year, providing an 
opportunity for a comprehensive refurbishment scheme, to be launched into 
the lettings market in 2013, ahead of the development pipeline elsewhere in the 
City. The balance of the portfolio comprises five buildings with 60 tenants and 
76% of the total rent roll. 
 
Max is investing 60% of the equity in the joint venture, with the private family 
trust fund investing 40%.  In addition, Max will receive an incentive fee on 
realisation equating to 20% of surpluses on the trust's investment once returns 
on equity invested in the joint venture exceed 11% p.a.. 
 
Terms have been agreed with Eurohypo AG to provide non-recourse debt of up 
to 55% of the purchase price, and completion is scheduled to occur on or before 
8 August. The purchase increases Max's share of gross assets to  GBP412m and net 
gearing to 33%. Following the acquisition, Max will have  GBP35m of uncommitted 
cash for future investments remaining from the initial  GBP211m raised in May 2009. 
 
Nick Leslau, Chairman of Prestbury Investments, Max's property manager comments: 
 
"St Katharine Docks is one of London's jewels, providing a stunning waterside 
environment, enhanced by the magnificent backdrop of Tower Bridge and the Tower 
of London. It is difficult to imagine a more beautiful place to work and live in 
Central London and it will be our privilege to enhance the experience of such an 
important landmark, whilst simultaneously delivering attractive returns for our 
shareholders." 
 
28 June 2011 
 
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 
 
 Edward Knight 
 
 
 
 Oriel Securities (Joint Broker)   Tel: 020 7710 7600 
 
 Mark Young 
 
 
 
 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Max Property Group plc via Thomson Reuters ONE 
 
[HUG#1526468] 
 

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