IM Properties has announced a £14m increase in turnover to £178m in its results to the end of 2016.
Pretax profit was down by 43.5% from £103.2m to £58.3m, which the Midlands-based investor and developer attributed to a particularly strong 2015.
Rental income fell by £35m following the sale of the Phoenix Portfolio in Q1 2016, which consisted of £200m of logistics assets. IMP said that while this has resulted in a reduction in net yield, this was offset by capital growth.
Return on capital employed in the company’s £664m portfolio was 14%.
IMP said it had cash reserves of £87m, mainly generated from property sales, which had given it the liquidity to invest in projects that offer a higher return in the medium to long term. It said there would be a particular focus on its development divisions.
The value of its property under construction and stock increased by £91m to £279m.
Tim Wooldridge, IMP’s managing director, said: “We have strengthened our in-house project delivery team, so we are able not only to invest in, but deliver highly complex commercial and residential projects.
“55 Colmore Row in Birmingham was a prime example of this in 2016, which saw a Grade II listed building completely remodelled bar its facade to deliver 160,000 sq ft of prime, grade-A commercial space in the city centre”.
The company’s residential division, Spitfire Bespoke Homes, saw turnover increase by 101% to £53m, while its strategic land arm, IM Land, has a pipeline of more than 12,000 plots with a combined value in excess of £1bn.
IMP has also started work on speculative office and industrial space on the M42 corridor at its Blythe Valley Park scheme.
Wooldridge said: “We move at a very fast pace and its exciting to be involved and have the reserves to seize opportunities. Our focus on the development side in 2017 is a strategic one, but we are flexible enough as a business to look at other investments if they present themselves. We go where we see we can add value or make a long-term impact.”
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