MAX Max Prop

 
TIDMMAX 
 
Max Property Group 
("Max Property") 
 
Max Property Group Plc announces  GBP45m London mid-town acquisition 
 
Max  Property  Group  plc  ("Max")  announces  the   GBP45.25m purchase of the High 
Holborn  Estate, from The Holborn Property Unit Trust, comprising nine buildings 
making  up the whole of a one acre island site fronting High Holborn and Bedford 
Row, London.  Totalling 150,000 sq ft and let to over 60 tenants on a short term 
basis, the current rents passing at c.  GBP2.2m pa equate to an average of just  GBP15 
psf. 
 
Max  intends  to  carry  out  a  rolling  refurbishment  of the principal office 
buildings  and to  investigate converting  the peripheral  assets back  to their 
original residential use. 
 
Contracts  have been exchanged unconditionally  with completion scheduled for 6 
November 2012. 
 
Prior  to the  acquisition Max  has c.   GBP90 million  of uncommitted  cash at its 
disposal  and has elected to pay cash  for the property.  It is anticipated that 
debt  finance  will  be  sought  at  a  later  stage  as Max's remaining cash is 
deployed. 
 
CBRE and Allsops acted on the transaction. 
 
Mike Brown CEO of Prestbury Investments, Max's property advisor, said: 
 
"The  High Holborn  Estate has  been run  as an  income producing site in recent 
years  and rental levels have fallen to very low levels, reflecting the tenants' 
lack  of security  of tenure  and the  absence of  any capital investment in the 
existing buildings. 
 
"In  common with last year's St Katharine Docks purchase, our entry price is low 
at  just over   GBP300 psf  and we  have similar  plans to  invest in improving the 
existing  buildings  whilst  extending  lease  maturities  and increasing rental 
levels. We are very excited to have acquired a London asset with great potential 
to  create  a  vibrant  community  of  tenants  in  newly  refurbished,  bright, 
contemporary office space. 
 
"Having  raised  GBP211m on flotation in 2009, Max's London assets after completion 
of  this transaction will have grown to  nearly  GBP200m, balanced primarily with a 
similar amount of high yielding Industrial property." 
 
2 October 2012 
 
ENQUIRIES: 
 
 Prestbury Investments LLP        Tel: 020 7647 7647 
 
 Mike Brown 
 
 
 College Hill        Tel: 020 7457 2020 
 
 Mike Davies 
 
 Helen Tarbet 
 
 Kim Peters 
 
 
 Oriel Securities (NOMAD)    Tel: 020 7710 7600 
 
 Mark Young 
 
 Joe Winkley 
 
 Gareth Price 
 
 
 
About Max Property Group Plc ("Max") 
 
Max  is a Jersey resident real estate investment company.  Its Board, chaired by 
Aubrey  Adams, is  exclusively advised  by Prestbury  Investments LLP,  which is 
owned and managed by a team led by Nick Leslau and Mike Brown. 
 
The  Company's strategy is to exploit cyclical  weaknesses in the UK real estate 
market  through opportunistic  investment and  active management  with a view to 
realising   cash   returns   for   shareholders  over  an  investment  cycle  of 
approximately seven and a half years from its listing in May 2009. 
 
In  the 34 months from listing to 31 March 2012, Max's Net Asset Value per share 
(measured on an EPRA basis) has risen by 39%. 
 
Max's  interim results  are due  to be  announced on 23 November 2012 which will 
include an independent valuation of the property assets on 30th September 2012, 
updated NAV growth calculations and property weightings. 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Max Property Group plc via Thomson Reuters ONE 
[HUG#1645830] 
 

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