Northumberland Estates chalked up a 71% rise in revenues on the back of growing income from its property developments.
The firm – which brings together the business interests of the Duke of Northumberland – totted up revenues of £57.3m following a busy year for its commercial and residential developments, which are growing in number across the North East.
The business is the collective title for the businesses of the Duke of Northumberland, other members of the Percy family and a number of other shareholders, which are focused on commercial property investment in the North East, 海角视频, Europe and North America.
Registered to Quayside House in Newcastle, which it acquired two years ago, the business now owns industrial estates, residential and retail schemes as well as several developments in progress, including Willowburn Retail Park in Alnwick and Tyneview Retail Park in Prudhoe.
Latest accounts for the property company, for the year ended March 31 2019, show the 71% lift in turnover, from £33.5m to £57.3m, while operating profit also jumped 16% to £14.5m. Pre-tax profit meanwhile was £37.9m, a rise of 24%.
The firm said future property investment opportunities are constantly being reviewed and assessed, and that the rise in group revenues was a direct result of increased property development revenues.
Despite reducing its number of investment properties, rental income remained consistent at £14m, thanks to bringing in tenants to vacant units.
Following publication of the accounts, Rory Wilson, CEO at Northumberland Estates, said the firm had enjoyed a busy 12 months, with residential highlights including the delivery of more than 100 affordable homes on North Tyneside and in rural Northumberland, either directly or in partnership. Northumberland Estates now has plans to create more affordable homes to help meet the needs of the local population.
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Meanwhile, the first phase of Willowburn Retail Park in Alnwick is nearing completion, having already enlisted M&S Simply Foods to the scheme, and the firm said phase two is on course to start this year, with news on several new operators due soon.
At Northumberland Park in North Tyneside confirmed new operators for the latest phase of development include B&M and J D Gyms and the final phase of construction is due to start this year. Tyneview Retail Park in Prudhoe, a joint venture with Advance Northumberland, is now under way with news of further operators due to join anchor tenant Aldi set to be announced soon.
During the year the firm also snapped up Merrington Lane Industrial Estate in Spennymoor, County Durham, and more than £2.6m is now being invested – the first major investment in the site since Electrolux closed the facility in 2007 – to provide over 306,000 sqft of space.
Mr Wilson said: “We are satisfied that the business has performed well over the past 12 months in competitive markets such as commercial property development and housing.
“This has allowed us to continue to invest in the region and beyond, although the North East remains central to future plans and at the heart of the business.
“Our continued programme of property development has enabled delivery of numerous new job opportunities for the region and supports our commitment to maintaining those historical and heritage assets under our control.
“We continue to deliver affordable housing in both urban and rural areas of the North East, something we believe to be vital in sustaining vibrant communities in the longer term and hence our decision to retain affordable housing stock as a part of our residential portfolio.”