Knight Frank has announced its financial results for the year ended 31 March 2015 reporting a record £162m profit and £443m turnover.
Alistair Elliott, group chairman and senior partner, Knight Frank said: “I am pleased to report another strong set of results for our latest financial year. We have achieved a 19% increase in profit, whilst continuing to invest significantly in recruitment and expanding our global platform.
“We continue to grow our network, recruiting the best people in key markets across the world. We believe it is this approach, as well as our unique partnership model that allows us to maintain a strong unified culture, the benefits of which our clients experience across our network.
“Our priority for the year ahead is to continue to develop our key services in the principal cities of the world.
“Our global strategy is working and we are winning more best-in-class instructions, especially in capital markets, valuations, residential sales, tenant representation and office leasing. The benefits of a balanced business are, I believe, being delivered.
“At a time when activity in commercial occupier markets is increasing in many cities around the world, we see the return of rental growth drawing more investor interest. For many investors, total returns still represent fair value. As yields harden further, we believe this will culminate in an increasingly active development market with investors focussing on development returns to counterbalance the flatter yield profile.
“Cross-border growth in residential development and investment continues. While some of this activity relates to portfolio and risk diversification, in the main it is a reflection of the closer economic interdependence of our key markets. In particular our growing presence in prime locations across London and our enhanced coverage of New York, Miami, LA and Sydney has helped to cement our offering to clients looking for access to the world’s leading employment centres.
“The specialist property sectors (including hotels, student property, healthcare, residential capital markets and automotive) are becoming a more central part of investors’ portfolios and solid returns over turbulent periods have increased their appeal. We will continue to invest in these key components of Knight Frank’s global offering.
Ashley Hudson, who heads the Birmingham office of Knight Frank, commented: “Investor and occupier confidence has returned with gusto to the regional markets this year.
“The bounce-back has been particularly strong in Birmingham, and is evidenced in our bottom line and our growing Birmingham presence.
“Our capital markets team was the first to turn the corner. Birmingham was named “the UK’s most investable city” in a survey by the Urban Land Institute and PWC, and high profile infrastructure improvements, including New Street Station, have added to our draw. The city’s office stock has been changing hands at an unprecedented rate and remains a top target for investors.
“Our research shows that Birmingham has more active enquiries for Grade A offices than any other regional city and take-up to date has already breached 2014 levels; the Midlands has also dominated the industrial market during the first half of the year. As a result our offices and industrial teams have been super busy.
“What’s most encouraging is that we are now seeing tower cranes appearing in the city. New developments, backed by investors debuting in the city, is a sure sign of confidence.
“The residential market has some catching up to do. But make no mistake their time is coming. High-end workers at the likes of Deutsche Bank, HSBC and HS2 all need good quality homes: there will be schemes coming forward in the next 12 months to address this demand.”