Rebalancing portfolio leads to £6m profits dip at IM Properties

WARWICKSHIRE property developer IM Properties saw its profits fall by £6m in the financial year to December 2013.

The Coleshill-based firm – best-known for developing large-scale distribution and logistics facilities – recorded pre-tax profits of £16.6m.

It said the fall in profits is reflective of the completion of the company’s strategy to reallocate resources to build its development pipeline and rebalance its portfolio towards high quality prime and institutional grade properties.

This has included the acquisition of key assets including Solihull’s Mell Square shopping centre.  

IM increased its net assets from £296m to £323m and boosted rental income by 11.1% to £37.7m over the 12 month period.

There was also a significant increase in the value of properties under construction, up £27m to £47m and an overall uplift in capital values of £3.5m.
 
Major refinancing has also resulted in 96% of IM’s bank debt secured to 2016 and beyond.
 
The company’s residential arm, Spitfire Properties, marked its third full year of trading having expanded the number of development sites within its portfolio across central England. It has trading stock of some £20m.
 
Internationally, IM Properties has continued to divest its European portfolio with the disposal of its one million sq ft distribution centre near Munich, which is let to BMW, and a portfolio of four further distribution units around Germany.

The company has increased its presence in the United States, with the construction of a further three Mariano’s supermarkets in Chicago adding to its existing stock.
 
Adrian Clarke, finance director at IM Properties, said: “Our growth strategy is absolutely on target and these results are as we expected, with a number of key investments and acquisitions now completed.

“This is a clear demonstration that we have taken advantage of a window in the development cycle and we are confident that the investment that we have made here will bring us significant benefits in the coming years. 

“We will now continue to develop our portfolio of strategic assets and ensure that we build on the strong performances that we have already seen across both the residential and commercial sides of the business.”
 
IM Properties’ portfolio includes North Warwickshire’s Birch Coppice Business Park, Birmingham industrial park The Hub and Solihull Business Park.