More businesses interested in Wolverhampton's I54 estate, Halesowen property group says
Businesses are taking a growing interest in Wolverhampton's I54 industrial estate, Halesowen property group A&J Mucklow has said.
The company said in a trading statement that the estate, which is already home to Jaguar Land Rover, is now attracting new interest, along with its other industrial site at Tyseley in Birmingham.
Steady occupier demand and a shortage of business space has helped the firm to deliver a solid performance in the period from July 1 to November 13.
Mucklow is marketing a 15 acre plot of the i54 site, proposing three factory units. One has already been snapped up by Swedish group Atlas Copco as a new home for its West Bromwich engineering business Tentec.
However the statement, to coincide with the company's annual general meeting on Tuesday, also warned that Brexit could change the market very quickly.
Chairman Rupert Mucklow said: "The Midlands property investment market has also continued to be strongly competitive during the same period, suggesting yields may still be falling and values rising on some prime regional properties. We declined to buy any investment properties during the period.
"Conditions in the Midlands property market are gradually becoming more favourable for pre-let development, due to the limited supply of stock. We are experiencing greater interest from potential occupiers on our two industrial sites at Tyseley, Birmingham and i54 Wolverhampton."
"Our 44,250 sq ft pre-let industrial building at i54 Wolverhampton is progressing well and is due to complete in February 2018."
He added: "Financially the Group remains in good health, with total net borrowings of £73.9m at 31 October 2017, against a property investment portfolio last valued at £386.9m on 30 June 2017.
"We are currently in a very good position, benefiting from low gearing, significant cash resources and a heavy weighting towards Midlands industrial property. Nevertheless, we remain mindful that circumstances can change rapidly, particularly with Brexit looming. We are, however, confident of our ability to manage and protect the investment portfolio through different phases of the property cycle and we remain positive about our prospects for the full year."