IM Properties (IM), one of the UK’s largest privately-owned property investment and development businesses, has reported a rise in pre-tax profits of over 100% on the previous year.
Based in Coleshill in Warwickshire, the award-winning investment fund and developer has reported pre-tax profits of £33.2 million for the year to 31 December 2014, with a further £16 million of valuation gains on the investment portfolio.
The group increased its net assets from £324 million to £379 million, with the rental income on existing properties across its portfolio lifting by 3.4% to £39 million. At the end of 2014, the total value of IM Properties’ investment portfolio stood at £577 million, an increase of £120 million from the start of the year.
The development division – including both commercial and residential developments – achieved a turnover of £87 million in 2014, creating a profit before tax of £10 million.
IM has established a significant development pipeline with property under construction increasing by £21m to £122 million. This is an area of the business which they are expecting will see further significant expansion in 2015, with the recent announcement of £50 million of speculative industrial development.
Across 2014, the company completed transactions totalling £413 million, with key acquisitions including the purchase of Rom Valley Retail Park for £22 million, and the Hadden Hill Retail Park in Didcot for £11 million.
Disposals included the £44 million sale of the London Square office scheme in Guildford, the Constellation Portfolio of 11 properties totalling over 700,000 sq ft for £44.5 million, and the 302,000 sq ft DC2 unit on the South Martson Business Park in Swindon for £22m.
Overseas, IM Properties is continuing to expand its business in the United States which had been primarily focussed on development in and around Chicago. 2014 saw work commence in Wisconsin on a new $200 million (£130 million) mixed use lifestyle centre – incorporating over 700,000 sq ft of retail and high quality residential apartments.
IM’s Finance Director Adrian Clarke, said: “These results demonstrate the success of the strategy that we initiated in 2012, which enabled us to focus on the development of our asset pipeline across 2014.
“We are operating to a core strategy that will ultimately provide us with greater liquidity and increased resilience of capital values, supported by the ongoing diversification of our business where the stable base and cash generation from our investment portfolio allows the commercial development team to focus on medium and long-term projects which will ultimately provide higher returns.”
An award-winning developer, IM Properties’ portfolio includes North Warwickshire’s Birch Coppice Business Park, one of the region’s biggest employment success stories of recent years, as well as premier Birmingham industrial and development site, The Hub.
Amongst its commercial holdings, the company owns the prestigious 55 Colmore Row in Birmingham city centre, which is currently undergoing an extensive redevelopment and the Blythe Valley Business Park near Solihull.