Bruntwood sets out project pipeline

Bruntwood reported increased profit of £12.4m on turnover of £105m, up 6%, in the year to September 2012.

The Manchester-based company had its best year for new lettings since 2007. Profit increased by 10% but net asset value fell slightly to £303m, down 5% on 2011, which the Oglesby family-owned business attributed to the "knock-on effect of the recession on the property market in general."

Last month Bruntwood secured a £120m 10-year facility with Legal & General. Yesterday a further £229m extension of its commercial mortgage-backed securitisation to January 2016 was passed unanimously by bond holders at an extraordinary general meeting.

Kevin Crotty, chief financial officer of Bruntwood, said: "In recent weeks we have secured nearly two thirds of our group refinancing requirements. Agreeing a new 10-year facility and passing a unanimous CMBS extension vote is a strong show of confidence for the group and demonstrates that there is demand out there for the right proposition."

The company is now focused on growth in new sectors.

Chris Oglesby, chief executive, added: "The demand for our development expertise and our strong financial position is enabling us to grow the business in exciting new sectors. 2013 will be one of our busiest years for new developments including four hotel schemes in three cities, an 80-bed care facility with Care UK in Greater Manchester, the development of Manchester Business School with the University of Manchester and the completion of 94,000 sq ft of state-of-the-art medical facilities at Citylabs. In addition to all this we're pushing forward with our ambitious plans for Manchester Science Park."

The four hotels are in Leeds, where Bruntwood has completed a Premier Inn at Hepworth House; a hotel within the new Manchester Business School, operator to be announced shortly; a £24m 223-bedroom hotel at Riverside in Salford between the Lowry Hotel and Bruntwood offices next to the River Irwell; and at Kennedy Tower in Birmingham, a Holiday Inn Express by Sanguine Hospitality. The extra care facility is a new build in Cheadle.

Bruntwood will also begin the redevelopment of three office buildings in Manchester city centre: Overseas House, Elliott House and Bank Chambers, as well as continuing works at Centre City in Birmingham, acquired in 2012, and City House in Leeds.

Bruntwood owns 110 office buildings in Manchester, Liverpool, Leeds and Birmingham.