Lettings bounce back at Bruntwood as profits jump 10%
REGIONAL landlord Bruntwood said it has had its best year for lettings since the financial crash five years ago.
During the year the Manchester group has notched up significant deals at its Riverside block in Salford and Booths Park near Knutsford which contributed to a 25% increase in lettings, from 480,000 sq ft to 600,000 sq ft.
Figures released by the company show pre-tax profits increased by 10% to £12.4m and turnover rose by 6% to £105m.
Net worth – the firm’s assets minus liabilities – fell slightly to £303m, down 5%. The group put this down to the subdued property market which also caused the total value of the group’s portfolio to dip 1.5% to £950m.
Chief executive Chris Oglesby said this year would be one of the firm’s busiest for new developments with four hotel schemes in three cities, including a Hotel La Tour in Salford.
It is also working on expansion at Manchester Science Park, an 80-bed care facility, the development of Manchester Business School and the completion of 94,000 sq ft of medical facilities at Citylabs on Oxford Road, Manchester.
Bruntwood will also begin the redevelopment of three office buildings in Manchester city centre: Overseas House, Elliott House and Bank Chambers, as well as continuing works at Centre City in Birmingham and City House in Leeds.
Mr Oglesby said: “The demand for our development expertise and our strong financial position is enabling us to grow the business in exciting new sectors.”
Last month Bruntwood secured a £120m loan with Legal & General and earlier this week bondholders approved an extension to £229m of the group’s £430m Commercial Mortgage Backed Securities (CMBS) .
