Profit boost for property firm following ‘step-change’ in local authority work

Warrington-based commercial property company Langtree has announced a nine per cent increase in like-for-like annual profits as activity across its many local authority joint ventures enters a ‘step-change.’

Profits grew from £887,000 in 2016/17 to £965,000 in the year to March 31, 2018, excluding one-off profit in the previous year.

Net asset value increased 29% to £3.6m with total assets under management increasing 5% to £210m.

The company’s head count now stands at 37.

“This is only our third year of trading, but the company has a very mature feel to it,” said chairman Tim Johnston.

“Our primary focus remains on developing the joint venture (JV) assets we own with our local authority partners and this year has seen a step-change in activity across all fronts.

“We have an extremely robust pipeline going forward, are well-funded and have a very strong and focused team. We are very optimistic about the future,” added Mr Johnston.

The growth follows a successful run of lettings at Sci-Tech Daresbury, the company’s JV with Halton Borough Council and the Science and Technology Facilities Council.

Based on this success, consent has now been secured for three new buildings totalling more than 50,000 sq ft and work will start on site in the second quarter of 2019.

Significant progress has also been made on the company’s Parkside Regeneration JV with St Helens Council, with a planning application submitted earlier this year for a first phase development of manufacturing and logistics space totalling almost 1m sq ft.

“The new Parkside Link Road connecting the site directly to the M6 motorway has now secured £24m of funding from the Combined Authority, which is a major boost,” said Mr Johnston.

“Given this we have already begun work on the Phase 2 planning application, hopefully to be submitted in Q2 2019.”

The company’s joint venture with Oldham Council at Hollinwood on the M60 received a further boost with major works now under way on site to remove the redundant gas holder, which Mr Johnston described as “a major breakthrough, unlocking new development sites for which we have deals lined up”.

The first planning application of the Wire Regeneration JV with Warrington Borough Council has been submitted for the first phase of residential development and plans to relocate the bus station to open up another significant development site are now under way.

“We’re building real momentum behind our plans for the Southern Gateway in Warrington,” said Mr Johnston.

In addition, Langtree continued to develop its partnership with fund manager PGIM Real Estate, advising on the purchase, refurbishment and management of a number of industrial investments, including Lyntown and Transpennine Trading Estates in the North West and Meadowbrook Park Trading Estate in Yorkshire.

“Our relationship with PGIM adds a different focus and revenue stream to our business and is one that is growing steadily,” said John Downes, Langtree’s group chief executive.

“We’re now also managing a number of key development opportunities on its behalf and we also operate numerous third-party management contracts for them.

“None of this, of course, would be possible without the hard work of a talented team of colleagues and advisors and my thanks go to all of them.”