News

INVESTMENT SALE KICKS OFF HOWARD FIVE YEAR PLAN

February 2010

Howard Property Investments, the largest division of the Howard Group of Companies, has sold a portfolio of three industrial estates. This transaction heralds the start of its new five year strategic plan which focuses on repositioning the Group's existing £100m portfolio.

The three multi-let industrial estates, which lie outside of the Group's core locations, are Glenholme Park, Newark, Gateshead Close, Sandy and Wharf Street in Warwick. The proceeds from the portfolio will generate £4.3m of funds for future investment. The estates were sold to Leonardo Property Fund.

 Michael Summers, the Group's Investment Director comments: "The core objective for our investment group is to reposition the property portfolio through a combination of disposals of older stock together with acquiring new investments which meet specific criteria. New investments will be sourced from within a more tightly defined geographic area which is best described as East Anglia and the East Midlands. Furthermore, the drive towards growth will focus upon tenant quality and covenant strength. We are typically looking to acquire fewer, but larger properties, each in the range of £5-10m. The task ahead will certainly be challenging, not least with considerable funds chasing limited stock. We are very well positioned to perform in this market, these are conditions where we have historically done very well.Key to our future success will be our ability to develop ever stronger relationships with our property advisers who possess good local market knowledge with access to owners and occupiers."

The division is well placed to achieve these growth objectives with access to over £50m of funds. Although this is a five year plan, the team is confident that progress will be made over the next 12-24 months.

Commercial property consultants, Lambert Smith Hampton, acted for the Howard Group. Andrew McGahey, Director and Head of the Cambridge Office, comments: "We have worked closely with Howard Property Investments to deliver the initial stages of their new strategy. In a challenging market we are pleased to have secured the sale of these three estates at a price above initial expectations. We look forward to working with Michael and his team in implementing the full Howard Property Investments strategy."