Manchester-based Bruntwood has reported a slight increase in pre-tax profits to £11.2m for the year to 30 September 2011.
In its full-year results, the family-owned property company attributed the 1% increase to significant lettings in the second half of the year and reductions made in overall group costs.
The total value of its 6m sq ft-plus property portfolio rose from £930m in 2010 to £940m. The company’s net worth grew by 3%, to £318m.
Bruntwood said that it was keen to take advantage of acquisition opportunities as they arose and would consider the disposal of non-core or peripheral stock in order to re-invest in its core markets. Last month, it sold its 110,000 sq ft 1 New York Street office block in Manchester to Invesco Real Estate for £42m, a 6.5% yield, in order to reinvest the proceeds into the purchase and redevelopment of the 209,000 sq ft Centre City Tower in Birmingham.
Chief executive Chris Oglesby also told Estates Gazette that Bruntwood would consider the purchase of well-priced distressed assets, including portfolios, on an opportunistic basis. He said that the firm was open to the possibility of financing such acquisitions by bringing fresh equity into the business.
Oglesby said: “Our priority is to grow the business organically, but we have an eye on opportunities which may emerge from the market, including distressed assets which sit with the banks.”
Bruntwood said it would look to take advantage of partnership agreements on potential developments including at Manchester’s Oxford Road Corridor, where it is heavily involved in the council’s drive to develop a science and education quarter for the city.
The firm has £35m of cash and undrawn debt facilities at its disposal. Last September, it secured a £200m medium-term club facility with Barclays, RBS and HSBC. It also has a £440m commercial mortgage-backed securitisation. Both facilities expire in January 2014.
daniel.cunningham@estatesgazette.com
