£12m property group’s profits hit by multi-million pound investment
A HOTEL and property company, Parklane Group has seen revenue increase to £12.7m, but profits have fallen after major investment.
Despite the 11% rise in revenue, the company, registered as Parklane Properties (Leeds), saw pre-tax profits fall significantly, from £2.4m to £924,338 for the year to 30 September 2015.
Managing director Naveen Ahmed said that the company had re-invested £35m over the year in its new brands and that following a revaluation, group-owned properties rose in value to £114m.
The 35 year-old management and development company includes the Parklane Properties brand, RentInc, Leeds Golf Centre and Roomzzz Aparthotels.
It has recently has added to its Roomzzz Aparthotel offerings, with openings in Chester and Nottingham.
Parklane has also launched IconInc, a luxury student apartment brand IconInc. The Edge development in Leeds opened its doors in September 2015 following a £15m investment.
Two other developments are due for completion this year, £19m The Glassworks, as well as £24m The Ascent in Liverpool, featuring 192 apartments. The latter will be the first time Parklane expands its student outside of Leeds.
The company is also planning to invest in five new Roomzzz locations, including its first in London.
Managing director of Parklane Properties, Naveen Ahmed, said: “2015 was a very big year for the Group with the launch of IconInc and the growth of our Roomzzz offering.
“We’ve made the decision to re-invest over £35m across our brands in the last year and we intend to continue this ongoing re-investment including supporting our latest venture with the Broadley Group (a Leeds based building maintenance and construction company), with the aim of going above and beyond our success in 2015 whilst continuing to meet the opportunities of growing the business in the coming years.”
