Lettings help lift Bruntwood profits
PROPERTY group Bruntwood said pre-tax profits, before exceptionals, rose 42% to £16.8m in the year to September.
The Manchester-based group, which owns 100 buildings across the North and Midlands, said the figure did not include costs associated with its £600m refinance.
In a statement the company said it had benefited from higher occupancy rates with over 500,000 sq ft let in 2013, including 25% of the Manchester city centre office market and a record year in Birmingham.
Bruntwood’s net worth fell slightly to £286.4m, down 5% from 2012, which it said was due to the timing of its valuations. Revenue increased 1.6% to £106.3m.
Chief executive Chris Oglesby said: “Refinancing around £600m of debt, secured by property valuations right at the bottom of the cycle, has been a significant achievement that enables us to focus on the future. Whilst this recession has been tough, our major regional cities emerge stronger from it and I am more optimistic about their future than I have been at any other time.
“We are very well positioned to capitalise on the strength of these markets; as well as the major projects we have planned, we will continue to strengthen our strategic partnerships and look to develop new relationships, ensuring that after a few years of reduced development activity 2014 will be our busiest year ever.”
Over the year, the company invested £14.6m in its existing portfolio on refurbishment projects and also increased occupancy at Manchester Science Park (MSP) to over 90%.
Projects already outlined for 2014 include: The redevelopment of 80,000 sq ft on Deansgate in Manchester at Overseas House and Elliot House; 100,000 sq ft at Citylabs; a new executive education facility and hotel at Manchester Business School and a new 50,000 sq ft hub at Manchester Science Park.
