Life sciences jv drives Bruntwood’s profit growth
Bruntwood has recorded a 68% jump in profit in the year to 30 September 2022 as it continues to grow its portfolio of innovation assets.
The developer’s pretax profit for the period increased to £75.2m, with Bruntwood SciTech, its 50/50 joint venture with Legal & General, named as a key driver behind the numbers.
The partnership has benefited from revaluation gains coming from the growing recognition of life sciences as a distinct real estate asset class. The firm has also noted that the jv’s investment in Alderley Park, near Macclesfield, has now become income-generative following a period of redevelopment activity.
Bruntwood has recorded a 68% jump in profit in the year to 30 September 2022 as it continues to grow its portfolio of innovation assets.
The developer’s pretax profit for the period increased to £75.2m, with Bruntwood SciTech, its 50/50 joint venture with Legal & General, named as a key driver behind the numbers.
The partnership has benefited from revaluation gains coming from the growing recognition of life sciences as a distinct real estate asset class. The firm has also noted that the jv’s investment in Alderley Park, near Macclesfield, has now become income-generative following a period of redevelopment activity.
Elsewhere, Bruntwood highlighted the success of its Pioneer buildings programme, which has now achieved 100% occupancy.
Across the group, net asset value rose by more than 10% to £671.5m year-on-year and the value of its combined portfolio, which includes Bruntwood SciTech assets, reached £2bn compared with £1.8bn recorded at the end of September 2021.
Chris Oglesby, chief executive of Bruntwood, said: “We have always looked beyond the short term to base our investments around the strategic trends we see reshaping our towns and cities. This approach, from the formation of Bruntwood SciTech in 2018 to the Pioneer programme of forward-thinking, flexible workspaces that we launched long before the pandemic, is the foundation of this year’s strong financial performance.
“As we now lean into the challenges presented by the end of another economic cycle, this will remain our focus. We will continue to focus our energies on investing in assets, whether that’s for Bruntwood SciTech or Works, in such a way that meets the needs of modern business and industry, targeting growth into new and existing cities around the UK.”
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