Henry Boot Plc - Boosts Development Pipeline
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HENRY BOOT PLC
('Henry Boot' or 'the Group')
Henry Boot PLC boosts pipeline with two strategic acquisitions
Henry Boot PLC has made two acquisitions in line with its strategic targets of increasing its investment portfolio towards a target of £150million, and to continue to expand its £1.4bn total development pipeline (HB share £1.1.bn).
HBD, the Group's property development business, has acquired Allied Business Centre, a 150,000 sq ft industrial estate in Skelmersdale, Lancashire from West Pimbo Limited for £4.75 million. The estate is in a strategic location adjacent to Junction 5 of the M58 motorway and comprises 117,800 sq ft of warehouse space plus serviced offices spanning over 30,000 sq ft.
The three warehouse units are let to Messenger Express Warehousing Limited who have been in occupation for over 15 years and the serviced office space is multi-let to 13 tenants. The estate generates total rental income of circa £303,000 per annum, with the purchase price reflecting a net initial yield of nearly 6.0%. The 10.7-acre site has low site coverage of around 30% which offers excellent redevelopment potential in the future.
HBD has also secured a prominent 2.6-acre city centre site in Birmingham's popular Jewellery Quarter with a view to delivering a circa £100m GDV residential-led mixed use scheme. Previously occupied by a Sytner BMW dealership the site was acquired with vacant possession from the joint vendors, King Edward 's School and Sytner Group.
Ed Hutchinson, managing director of HBD, said:
"These two deals are the latest in a series of acquisitions by HBD, which include a key site in Manchester's St Johns district and the purchase of 60,000 sq. ft. in Mabgate, Leeds. All of these latest acquisitions have significant future redevelopment potential and are an excellent strategic fit for our business."
The acquisitions form part of the Group's core development strategy targeting industrial and logistics, residential and urban development schemes.