Real estate group Langtree expects profits to double as occupancy and rents rise

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Warrington-based commercial real estate firm Langtree posted a 130% rise in annual pretax profit on the back of increases in occupancy and rents.

In his 2021/22 results, chairman Tim Johnston revealed the increase in pre-tax profit to £5.3m and a 45% increase in net asset value to £16.4m.

But he warns of the need to be “always vigilant” in the face of the current economic headwinds.

The company, which specializes in joint ventures and partnerships with local authorities and the provision of asset management services to institutional landlords, has more than three million square feet of properties owned or managed and serves more than 600 tenants within the group’s portfolio.

The property is currently 92% leased, delivering £23m annual rent and is valued at £530m. The company’s estate includes locations in the North West, Yorkshire, the Midlands and the South West.

The current gross development value of assets under his control exceeds £1 billion for the first time.

Mr Johnston said: “This is a very strong set of results delivered by an exceptional team across all aspects of the business.

“Many of our office and laboratory tenants work in collaborative industries where their teams value instant access to colleagues. As a result, we have seen much less ‘voluntary absenteeism’ affecting other managed properties during and after the pandemic and so we have not been significantly impacted by the expected impact of increased home working on commercial properties.

“Our overall occupancy increased due to strong occupancy performance from our three speculative office buildings, known as Violet, at Sci-Tech Daresbury, which are now 86% occupied and achieving record rents on campus. It has given us the confidence to move forward with an additional 53,000 square feet of new offices and laboratories.”

His report goes on to highlight continued growth in the company’s partnership business with local authorities, noting Langtree’s appointment later in the year by Halton Borough Council to support the Astmoor Regeneration Initiative.

This phase will develop up to 180,000 square feet of industrial space on 20 acres of land upon completion of the Mersey Gateway Bridge.

The company’s joint venture with Warrington Council, called Wire Regeneration, also accelerated the start of construction of the new city center bus depot to allow for further development land at the Wilderspool Causeway with the confirmation of the creation of a new digital hub at the St James Business Centre and completed financing for the Bevan Mews housing development.

At Oldham, Hollinwood’s partnership with the local authority aims to advance the next phase of the approved 100,000 square foot development, while at Parkside in Newton-le-Willows final preparations are underway for the appointment of a contractor to begin this Delivery of the first phase of one million square feet of work on the Parkside Link Road which connects the site directly to Junction 22 of the M6 ​​motorway and is now fully underway. A significant bonus to the project is the recent confirmation of the site as the largest of three tax and customs sites for the burgeoning Liverpool Freeport.

Additionally, the next phase of the Company’s successful Bromsgrove Enterprise Park will provide 62,000 square feet of light industrial space in 19 new units. The scheme is now in place.

Mr. Johnston added, “Langtree is a solid commercial entity that represents an ideal platform that enables us to undertake and deliver complex regeneration projects that both add value and support the social and economic ambitions of our local government partners. We have increased staff again this year to ensure we remain at the top and the team once again deserves great credit for their efforts.”

Among the new additions is a dedicated full-time ESG manager who contributes to the company’s long-standing focus on creating social value through its environmentally responsible developments.

Mr Johnston said: “This has been a common agenda item for Langtree and its partners for many years and I am pleased that it continues to be strengthened.”

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