IM Properties looks to the future with development pipeline
Midlands based IM Properties (IMP), reported a pretax profit of £63.6m, up 9% for 2017, as they continued to outperform the real estate industry.
IMP achieved a total return on capital employed for the year of 14% compared to an industry average of 11.2%.
The sale of 55 Colmore Row, IMP’s flagship office scheme in Birmingham, amongst other transactions, contributed to the healthy profits, with the investment division realizing a profit of £23.3m from asset sales alone.
Sales proceeds will be partly re-invested into the commercial development division of the business, which has amassed a land bank capable of delivering 17m sq ft of logistics and manufacturing space.
Still in the early stages, the new pipeline includes a number of significant strategic sites along the M42 and across the Midlands including Peddimore, for which IM Properties was named preferred development partner by Birmingham City Council after a highly competitive bid process.
Tim Wooldridge managing director of IM Properties said:
“We have set our business up to strike a balance between the lower income returns from our institutional grade investment portfolio and the higher returns generated by our development division, which we have grown substantially over the last decade. The two elements of the business very much support each other.
‘’The distribution of assets across the business sits well in terms of risk exposure and we will continue to evolve and restructure the business to ensure that it is resilient to the political and economic headwinds being experienced presently. We feel well placed to continue to take the business to the next level in the medium term.’’
IM Properties housebuilding division, Spitfire Bespoke Homes, for which Tim Wooldridge recently became chairman, also continued its rapid expansion with turnover increasing by 61% to £85.5m, generating a pre-tax profit for the group of £6.1m.
“The fundamentals remain strong for the UK private housing market and in the geographical areas in which Spitfire operates. The residential market is becoming more challenging but demand remains robust for high quality product in desirable locations.’’
Having won an industry innovation award this year for its groundbreaking, Electricity Cost Neutral Building (ECN) utilising battery power technology, IM Properties also continues to investigate new sustainable technologies to future proof its business.
“Technology is driving forward change in every aspect of life and this will increasingly impact on the real estate industry and challenge us all to think about how we shape our businesses. Creating sustainable, best in class assets has always been at the heart of our business and coupled with a desire never to stand still, we always continue to look at ways to ensure a positive legacy is left for future generations.”
IMP is one of the UK’s largest privately owned, multi-disciplined property companies and continues to operate across the UK, Germany and the USA, building on its new lifestyle centre – The Corners of Brookfield in Wisconsin, which includes 400,000 sq ft of retail and 244 residential units.