Newly listed Max Property Group (MPG) has confirmed it has made its maiden acquisition with the purchase of a portfolio of principally light industrial property in the UK for £232 mln (EUR 274 mln).
Newly listed Max Property Group (MPG) has confirmed it has made its maiden acquisition with the purchase of a portfolio of principally light industrial property in the UK for £232 mln (EUR 274 mln).
The investment comes to £245.4 mln when stamp duty and acquisition costs are included. Max acquired the portfolio from Ernst & Young, which was acting as receiver for the Industrious Group.
MPG said the acquisition would be part financed with a non-recourse debt facility of up to £128.3 mln on a five-year term, arranged by Eurohypo. The balance will come from MPG's cash reserves.
Completion of the acquisition is expected to occur by 7 October 2009. MPG was advised by Franc Warwick. King Sturge acted for Ernst & Young.
The portfolio comprises 706,000 m2 with over 800 tenants on 86 mainly freehold industrial estates throughout the UK. Some 140,000 m2 of the portfolio is currently or imminently vacant. About 46% of the portfolio by value is in London and the South East.
The portfolio produces a gross rental income of £29.6 mln per annum. The estimated rental value of the portfolio if fully let is £32.5 mln per annum.
MPG, backed by UK real estate investment veterans Nick Leslau and Mike Brown, raised £211 mln net of expenses through its IPO on London's junior AIM market in May 2009.
