• Safe and sound

     

    Industrial property specialist A&J Mucklow is successfully balancing a risk-averse outlook with its ambitions to exploit growth opportunities in a promising market.

    A&J Mucklow celebrates its 80th anniversary this year and last year celebrated its 50th year as a quoted company, having delivered half a century of shareholder returns averaging 16.1%.

     

    This impressive statistic can be attributed in no small part to the West Midlands-based company’s enduring reputation for a quality product and reliable service. Its current portfolio comprises around £250m of modern, high quality property, with over 90% located in the Midlands and almost two-thirds focused on industrial properties occupied by more than 200 client companies.

     

    Maintaining – and developing – a portfolio that delivers a strong performance for stakeholders is a core long-term objective. And while economic conditions remain challenging, A&J Mucklow Finance Director David Wooldridge is convinced that this is a good time to buy. “Current investment yields do offer an attractive margin over cost of debt. And there’s the hope of future income and capital growth potential in certain sectors. There’s still very good reason to want to invest.”

     

    To attain the necessary flexibility to acquire new properties, last year the company arranged a new £20m loan on an exceptional fixed-rate 10-year term with Lloyds Bank Commercial Banking – bringing the Bank’s total funding support to £40m.

     

    Delivered at a time when wholesale market conditions were restricting most banks to no more than five-year lending terms, the unusual 10-year loan was, says David, a reflection of the Bank’s faith in the company and its “conservative financial strategy and track record.”

     

    Describing A&J Mucklow as “one of the country’s safest and soundest property companies,” Richard Round, Relationship Director for Lloyds Bank Real Estate in the Midlands is pleased to back the company’s ambition to take advantage of currently relatively attractive prices for assets in their industrial properties niche.  “We were prepared to break the mould, and provide the fire-power they need to pursue their strategy.”

7/18/2019 1:36:51 AM