GREEN Property has sold its 320,000-square-foot industrial estate at Milton Keynes in England to MEPC for £11.75 million.
The estate was purchased less than a year ago for £10 million. However, the property was revalued at £11 million in the 1996 balance-sheet. When expenses are taken into account, the dealing profit will be around £0.5 million and this, together with other anticipated dealing profits, will come through this year.
Green received around £1 million in rent from the estate in the 11 months it has held the property. That, together with the dealing profit, less costs, from the sale, indicates a 27 per cent return.
The group, according to its managing director, Mr Stephen Vernon, was never a long-term holder of the property. It was purchased by Green because it was "very attractive". The seller, Morgan Grenfell Property Asset Management, wanted the "deal done very quickly and Morgan Grenfell knew we had the cash".
Green purchased the Milton Keynes industrial estate, and a 49,000 square foot property consisting of two linked office buildings in Bromley, Kent, from Morgan Grenfell for £16.4 million last July. This leaves Green with the Bromley property at a cost of £4.65 million. It effectively provides a yield of over 16 per cent.
Mr Vernon said further sales of some £5 million are in the pipeline while a further £5 million are anticipated before the end of the year. Its main shopping centre at Blanchardstown has started developing the retail warehousing element of the scheme. And Green, Mr Vernon noted, has received planning permission for the joint venture with Dublin Corporation to develop a 100 acre industrial park on the Fonthill Road, near the M50.
