Henry Boot PLC boosts development pipeline

RNS Number : 2209W

Boot(Henry) PLC

22 April 2021

 

22 April 2021

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.

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Enquiries:

Henry Boot PLC

Tim Roberts, Chief Executive Officer

Darren Littlewood, Group Finance Director

Daniel Boot, Group Communications Manager

Tel: [phone]

www.henryboot.co.uk

Numis Securities Limited

Joint Corporate Broker

Garry Levin/George Fry

Tel: [phone]

Peel Hunt LLP

Joint Corporate Broker

Charles Batten/Harry Nicholas

Tel: [phone]

Hudson Sandler

Financial PR

Nick Lyon/Wendy Baker

Tel: [phone]

About Henry Boot PLC

Henry Boot PLC (BOOT.L) was established over 130 years ago and is one of the UK's leading and long-standing property investment and development, land promotion and construction companies. Based in Sheffield, the Group is comprised of the following three segments:

Land Promotion:
Hallam Land Management Limited

Property Investment and Development:
Henry Boot Developments Limited (HBD) , Stonebridge Homes Limited

Construction:
Henry Boot Construction Limited , Banner Plant Limited , Road Link (A69) Limited

The Group possess a high-quality strategic land portfolio, an enviable reputation in the property development market backed by a substantial investment property portfolio and an expanding, jointly owned, house building business. It has a construction specialism in both the public and private sectors, a long-standing plant hire business, and generates strong cash flows from its PFI contract through Road Link (A69) Limited.

www.henryboot.co.uk

 

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