Tyneside property company Adderstone Group has released accounts showing how it increased its investment portfolio to £115m last year, despite the challenges of the pandemic.
The Newcastle-based group, which is made up of more than 50 corporate entities, released figures for the year ended March 31 2021, saying it increased its net assets by £4.2m.
Adderstone increased its asset base through a combination of redevelopment and acquisitions, including retail warehouses at Middle Engine Lane at Silverlink, Victoria Retail Park in Hull and Great Eastern Square in Felixstowe.
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Following the year-end, the company also snapped up St Ann’s Quay, a mixed-use freehold comprising 32,000 sq ft office space on Newcastle’s quayside, Thomsen Retail Park in Sunderland, and Haughton Retail Park in Darlington. It also completed its Pipewell Quay and Tyne Bridge House developments on Gateshead Quays, which will now provide new head offices for Aspire Technology Solutions Ltd and The Great Run Company respectively.
Including recent developments at Baker’s Yard in Gosforth, Dean Street Arch and Keel House in Newcastle city centre into account, Adderstone has completed new business leases totalling 100,000 sq ft in the last 12 months.
The group also launched Adderstone Living in the accounting period, to deliver ‘land-led’ developments for registered housing associations. The newly incorporated business completed three developments in its first year, completing 34 homes in partnership with North Star Group and Karbon Homes.
A further three contracts were secured post-year-end, which will see the new company deliver 198 homes with a gross development value of £30m in partnership with Places for People, Karbon Homes and Thirteen Group.
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The group is also progressing its luxury apartment development at Hanover Point in the Stephenson Quarter and an 1,118 student campus at Manors in partnership with Blackstone’s iQ Student Accommodation (iQSA). The group is also expecting to secure detailed planning consent for a development of luxury apartments in Low Fell, Gateshead.
Group chief financial officer Michael Shipley said: “Despite the obvious challenges of the pandemic, we’ve been able to continue with our ambitious growth plans with the support of our lenders.
“We’ve enjoyed a highly active year with a record number of transactions, growing our commercial property portfolio by over 60% in 2021, with the addition of 13 quality assets and a strong mix of first-class tenants.
“Coupled with our in-house developments team having added significant value to the growing asset base through numerous refurbishments, extensions and conversions, it’s proven to be an exciting and productive year for the business.”
Mr Shipley’s comments came as accounts were also published for Adderstone 1993 limited, part of the group which includes Adderstone Living Ltd, Adderstone Asset Management and around 15 of the firm’s subsidiaries. The accounts showed turnover growth from £2.95m to £6.15m, while operating profit also rose slightly from £1.594m to £1.597m.
The accounts add: “Despite the challenges in the period and post year end, as a result of the Covid-19 pandemic, significant progress was made in this regard, with the portfolio increasing in value by over £20m in the year and a further £23m post year end.”
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