Network Space, the northern industrial property developer, investor and manager has recently let two construction contracts to build 215k sq ft of new industrial property, with a third contract for 103k sq ft to follow shortly, as well as beginning infrastructure works on their 60 acre logistics site.
The commitment totals £21 million and is made as Profits before tax have reached a record £28.0 million for the year ending 30th June 2017, with NAV rising to £120 million.
- Profits increase to £28 millions (£19 million in 2016)
- NAV increases by 27.5%
The new industrial developments are in Stoke, St. Helens and Knowsley and will comprise 12 buildings, all of which except one are being delivered speculatively. The 60 acre logistics site is capable of accommodating a single building of over 1,000,000 sq ft, all contract works are being self- funded by Network Space. These schemes constitute the beginning of a £210 million, 2.5m sq ft, 5 year development programme which Network Space has land secured to deliver. The result will predominantly be small-to-medium sized industrial units which are intended for retention in the investment portfolio once completed.
In the financial year to June 2017 the Group has surpassed the previous record profit result set in 2016 by £9 million and NAV has risen by 27.5% to £120 million, whilst gearing on the investment portfolio has reduced to 27% as external borrowings have fallen to £40 million. The results come two years after a rebranding, restructuring and a change of leadership and strategy.
Richard Ainscough, Group Managing Director said:
“The last two years have been remarkably successful and reassure us of our chosen strategy. It is particularly satisfying that our profits are a consequence of success in all operational areas of development, investment and management. A number of development land projects have completed at or ahead of expectation, our investment strategy continues to deliver valuation gains as well as in-year profits and our management activities have ensured our rents have grown in line, if not beyond, the market.
“It is most encouraging that we begin this next year with a strong financial structure, giving us the platform to develop our 5 year land bank into much needed small-to-medium sized industrial units that will further strengthen our investment portfolios. Furthermore the income and capital returns from our existing portfolios continue to outperform the market as we refine our stock and continually invest in new management initiatives and the systems to support them.
“Clearly there are external economic risk factors to monitor and consider, but we remain very prudent in our risk assessment and continue to make sure that we have a degree of insulation against the possible negative effects of a failing economy. Looking forward we have reason to be optimistic with a healthy development pipeline, the means to fund it and an excellent team in place to make it all happen.”