Bruntwood hails "stand-out year" as profits surge 56%
BRUNTWOOD, the family-owned property developer and investor has hailed a “stand-out year” as profits in 2014 surged 56% to £19.3m.
The Manchester-based group, which has a presence in key cities Leeds, Birmingham and Liverpool said its net worth had increased 25% to £358m during the year.
Bruntwood, which is owned by the Oglesby family and gives a share of its profits to good causes and arts projects, said it had cut its debt from £590m to £440m and from 66% to 55% of the value of its buildings. In doing so, it agreed a new £300m five year banking facility with RBS, Barclays, HSBC and Santander at the end of 2014.
In the commentary in its accounts, the company attributes its growth to both the the performance of the business and the regions in which it operates.
Over the year, it completed a number of major redevelopments including 100 Wellington Street in Leeds, as well as Manchester One, Centre City in Birmingham, and Cotton Exchange in Liverpool.
Focussing on further growth Bruntwood took advantage of the growing investor interest in the regional cities through three significant disposals, including selling Manchester’s City Tower for £135m, to release funds for what it describes as its largest ever development programme.
Chief executive Chris Oglesby said: “2014 has been a standout year for Bruntwood. The fact that we continued to invest in our portfolio during the economic downturn has positioned us well to fulfil the uptake in demand that we’ve seen across all of our markets as the economy has recovered and the focus has shifted to the major City Regions as engines of growth.
“We have always aligned our business with the strategic direction of the economies in which we operate. Political initiatives such as the Northern Powerhouse and further Regional Devolution are good for the future of our cities and therefore good for our business as well.
“It’s our opinion that with the strength of our occupational markets coupled with long term gilt rates at an all time low of 1.5%, we are likely to see significant further growth in commercial property values in our markets.
“We’re therefore enter 2015 with confidence as we deliver a development pipeline of over 2 million sq ft including Alderley Park, 3 Sovereign Square and City House in Leeds, Cornerblock in Manchester, the new 70,000 sq ft Heart of the Park at MSP, Manchester Business School and 2 Cornwall Street in Birmingham as well as fulfilling our ambitious plans for Manchester Science Partnerships”.
