Allied London sees revival in property market pick-up

THE IMPROVEMENT in the property market accelerated in the last quarter of 1993, according to Allied London, the property developer that almost doubled profits in the six months to December, writes Tom Stevenson.

Howard Stanton, managing director, said investment yields had fallen, increasing the capital value of properties. He said tenants were starting to breathe life into the occupational market.

During the first half Allied spent pounds 41m on investment properties. Acquisitions included a pounds 35m mixed portfolio from Provident Mutual and other buildings in Basingstoke, Leeds and Glasgow.

In December Pelham Homes, the housebuilder, was bought from the receivers to Rosehaugh, the collapsed property developer.

Pre-tax profits were pounds 5.7m against pounds 2.9m, from rental income 11 per cent higher at pounds 10.5m. Earnings per share were 4.5p (2p) and there was an interim dividend of 1.18p (1.075p). The shares closed 1p higher at 115p.