BAM Properties, the property development arm of BAM Construct UK, has achieved a number of significant sales and lettings in its commercial and retail development portfolio. Recent deals include: · The sale of the largest building in its Glory Park development at High Wycombe to Paradigm Housing Association for approximately £9million · Letting of 36,310 sq feet on a 10 year lease to RWE npower renewables at Auckland House, its development in Lydiard Fields business park in Swindon, and sale of the building to investors Threadneedle for £8 million The sale of two of the let retail units in its development at Glasgow’s premier shopping thoroughfare, Buchanan Street, to Royal Liver for approximately £7.5m
Commenting on these developments, the Managing Director of BAM Properties, John Burke, says: ‘BAM Properties believes its selective market strategy is being vindicated. The investment market is beginning to recover in the UK assisted possibly by the effects of quantitative easing working through the economy. A more positive attitude to property is evident from occupiers and investors. But the appetite for commercial property is only for highly specified, sustainable properties in prime locations, consistent with our forecast of a gradual recovery at the high end of the market. Similarly, in the retail market, we see signs of increasing demand but only for the very best locations.
‘We expect that trend to continue to 2010 with increasing investment activity that matches our strategy of developing high quality sustainable offices and prime retail sites. ‘These are encouraging signs that the market is beginning to function rationally again. However, we remain highly selective and will sell only when the market is right and at fair value. ‘BAM Properties’ strengths are its longstanding presence in the UK property market and being part of Royal BAM Group a substantial, international, integrated property and construction services company. This enables us to play a selective, long-term game and pursue astute strategies that yield value for investors.’ ENDS
