Five fingers

JMS pushes through GBP50m equity capitalisation to make fifth acquisition

JMS Estates (JMS), the central London residential property company started in 2009 by Michael Sherley-Dale, has completed a further round of equity raising to purchase its fifth acquisition.

Forum Partners, through its FERI III fund, has a controlling interest in the company. Other shareholders include many investors from Michael Sherley-Dale’s previous vehicle City North Group plc, which was sold to Grainger for GBP60million in 2004.
 
JMS has acquired four sites to date in central London in Newman Street W1, Byng Place WC1, St George’s Square SW1 and Finborough Road SW10 and targets properties in zone one and two at prices under GBP600 per square foot. The Company aims to achieve gross yields in high single figures or yields approaching double figures. It has just achieved planning permission for 81 student flats at Princess Beatrice House, Finborough Road, SW10. It also recently exchanged on the purchase of 7 Dock Street E1, which will increase its holdings of residential properties to 150,000 square feet.
 
JMS intends to expand its portfolio over the next two years focussing on the London market at a price where there is greatest demand and proven liquidity. By refurbishing and redeveloping chosen properties it will build a portfolio let to students, hostel companies and private individuals generating healthy income returns with the advantage of capital growth when the properties are stabilised.
 
Sherley-Dale says: “JMS has made a reasonable start in establishing a central London portfolio. Having raised approximately GBP50 million from shareholders we will be working hard to build up assets through refurbishment, re-development and acquisition.” The Company has minimal gearing currently but expects to increase its leverage over the next year. Having acquired its portfolio for an average of less than £400 per square foot, the Company believes it may achieve an exit of nearer £1,000 per square foot within the next three years.
 

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