Langtree sees profits more than double   

The Warrington-based developer reported profits of £5.26m for the year ended 31 March 2022, up from £2.3m the previous year. 

While profit rose by £3m year-on-year, the net asset value of Langtree’s portfolio increased by 45% from £11.4m to £16.4m. 

Langtree puts the improved performance down to successful partnerships with the public sector, including several North West local authorities, and high occupancy rates across its estate. 

The company has more than 3m sq ft of property under ownership or management, which is let to more than 600 tenants. 

The estate is currently 92% let, delivers an annual rent roll of £23m and is valued at £530m.  

Despite increased profit and strong occupancy levels, Langtree chairman Tim Johnston said the company must remain vigilant given current economic headwinds. 

“This is a very strong set of results delivered by an exceptional team in every part of the business,” said Johnston.  

“It is clear however that a general downturn in economic activity seems very likely going forward, also likely feeding through to softening property values, and we must therefore be ever vigilant as we move into the next financial year.” 

Occupancy rates across Langtree’s buildings were helped by having tenants that work in collaborative industries, Johnston said. 

“Many of our office and laboratory tenants…value immediate access to colleagues so we found much less of the ‘voluntary absenteeism’ that affected other managed estates during and after the pandemic and so we have not been materially affected by the anticipated impact on commercial real estate of increased home working.” 

Langtree expects to appoint a contractor for the first 1m sq ft at Parkside Colliery soon. Credit: via Merrion Strategy

Violet, Langtree’s speculative three-building laboratory development at Sci-Tech Daresbury, has proved successful and is now 83% let and achieving the highest rents across the development. 

“The strong letting performance of our three speculative office buildings…[has] given us the confidence to push ahead with a further 53,000 sq ft of new offices and laboratories,” Johnston added. 

Highlights of the financial year include Langtree’s appointment by Halton Council to deliver 180,000 sq ft of industrial space as part of the Astmoor Regeneration initiative, and the approval of the first phase of development at Parkside Colliery. 

Langtree, in 50:50 joint venture with St Helens Council, won consent for 1m sq ft of industrial space at appeal and a contractor is close to being appointed. 

A planning application for the 1.7m sq ft second phase at Parkside is due before the end of Q1 2023. 

Johnston added: “Langtree is a solid commercial business which is an ideal platform allowing us to undertake and deliver complex regeneration projects that are both value-creating and which support our local authority partners’ social and economic ambitions.”