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PROPERTY PORTFOLIO Leasing out property can be as lucrative for

21st September 2006
Page 52
Page 52, 21st September 2006 — PROPERTY PORTFOLIO Leasing out property can be as lucrative for
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Which of the following most accurately describes the problem?

small firms as for the DHLs and Wincantons of this world.

When Scottish firm Pollock (Scotrans) made a loss last oi financial year, it chose to close its Cheshire depot and lease out • the property in an effort to turn around its fortunes.

** Meachers Group in Southampton has recently expressed a strong interest in branching out into residential and if commercial property. Commercial manager Gary Whittle

says that while this has been put on hold because of another venture the firm has just started, it is likely to launch itself into the property market by next year.

Whittle adds that Meachers' decision to rent out residential property is part of its backup plan should there be a downturn in transport. "It's the old theory of ice cream and umbrellas: if you aren't selling one then you can sell the other. We've looked at a number of different options."

According to Whittle, property is an area many transport firms explore. "They tend to be old-style family companies where they bought the land 30-odd years ago and they have built up a portfolio over a period of time. The smaller guys own the land and then look to utilise it, whether that be in the distribution industry or just as a landlord."

A benefit of moving into property is that there is limited risk; you get your rent week in, week out. And then there are the profits: "If you look at the statistics, property prices are going up 1-2% a month," adds Whittle.

Tags

People: Gary Whittle
Locations: Southampton

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