The property giant bounced back after suffering a £19m pandemic-induced loss, recording a £45m pre-tax profit for the year ended 30 September 2021.
Bruntwood’s return to profit came as its core rental income and property valuations increased after weathering the worst of the pandemic.
“In the early days of the pandemic, there was a lot of hyperbolic commentary about the decline of our city centres and their workplaces,” said Bruntwood chief executive Chris Oglesby.
“But what happened was that businesses and people felt the impact their absence had on the innovation, collaboration and interactions that make our economies successful and our lives richer.”
Results at a glance
- £44.9m pre-tax profit
- Total asset value rose to £1.7bn from £1.5bn
- Turnover dipped to £122.6m from £134.4m in 2020
- £18.6m investment into refurbishment and capital improvement projects across its portfolio
- £27.8m equity injection into Bruntwood SciTech that was matched by Legal & General
- Bruntwood Works portfolio value rose from £973m to £1bn
Bruntwood group’s financial position was further strengthened by the completion of a new £276m, 15-year sustainability-linked facility with Aviva Investors.
Bruntwood SciTech, the company’s joint venture with Legal & General, also returned to profit in 2021.
The business, which specialises in developing innovation districts, reported a £17.1m profit having slid to a £7.6m pre-tax loss in 2020.
Going into 2022, Bruntwood SciTech, in collaboration with investor Stanhope, is developing plans for the £1.5bn ID Manchester. The JV was picked to deliver the 4m sq ft redevelopment t of the University of Manchester’s 18-acre former UMIST campus last year.
Kate Lawlor, chief executive of Bruntwood SciTech, said: “Unlocking the power of the science and technology industries of our cities is a key pillar of the UK’s economic strategy, and this focus is driving our growth and our ambitious plans for the future.
“This year was a tipping point for the business in many ways. The momentum behind our expansion saw us take Bruntwood SciTech into new strategic locations, secure our largest ever development opportunity [ID Manchester] and saw several new transformational projects take some big steps forward.”
Highlights of 2021
- Acquisition of 83,000 sq ft Pall Mall on King Street
- 120,000 sq ft letting to Roku at Circle Square
- Masterplans brought forward for Stretford town centre and the Stamford Quarter in Altrincham
- First steps taken to form JV with Bury Council to redevelop Mill Gate
Key pipeline projects
- ID Manchester, the £1.5bn commercial led redevelopment of the former UMIST campus at the University of Manchester
- Alberton House – 18-storey new-build office on St Mary’s Parsonage
- The redevelopment of Stretford Mall and creation of Lumina Village in Trafford
- Major overhauls of North Manchester General Hospital and Wythenshawe Hospital
Oglesby added: “While there may be bumps ahead as the world adjusts to Covid becoming an endemic condition, we have never been more convinced of the vital long-term importance of our cities being able to thrive.
“This is our purpose and we’re doubling down on our commitment to it by ramping up our investment and development activity this year.”