West Midlands assets ‘perform strongly’ as profits rise at property company

Tim Johnston, Langtree chairman

Commercial property company Langtree has increased underlying profits by 9% as it continues to grow its presence three years after it was formed.

Langtree was formed in 2015 following a management buy-out of the public sector development partnerships part of Langtree Group, with the group then rebranding as Network Space.

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

John Downes, Langtree’s group chief executive who led the MBO, said: “The West Midlands remains a key part of our portfolio and our assets across the region have performed strongly.”

Langtree has four enterprise parks in the West Midlands, in Blackheath, Bromsgrove, Leominster and Shrewsbury, while its business park properties include Sapphire Court in Bromsgrove and Ludlow Business Park in Shropshire.

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

Chairman Tim Johnston said the company has “an extremely robust pipeline” which is boosting confidence about its future prospects.

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

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

Langtree continued to develop its partnership with fund manager PGIM Real Estate, managing industrial estates on behalf of the investor.

Downes added: “Our relationship with PGIM adds a different focus and revenue stream to our business and is one that is growing steadily.”

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