Strong tenant demand for office and industrial space in London and the South East helped McKay Securities (MCKS) deliver strong trading for the five months to 23 February. A chronic shortage of supply has been further exacerbated by obsolescence of existing space, companies expanding into larger premises, and a desire to locate to areas near where the new Crossrail service will operate.
A total of 13 lettings were completed in those five months, bringing in contracted rent of £0.74m; that's 5.6 per cent ahead of the estimated rental value calculated last September. McKay has also been busy recycling capital, although no further acquisitions were made. However, in December it did sell the freehold on 202/203 Blackfriars Road in London for £21.5m, which was 5.4 per cent above book value as at September, and considerably more than the 2011 £7.4m purchase price.
