Logistics giant Stobart Group’s property division more than trebled its pre-tax profit in the year to 29 February.
Stobart Estates recorded a £12.4m pre-tax profit compared to £3.9m in the previous year. Turnover also climbed to £6.7m from £4.4m.
During the period, key transactions included the purchase of the Moneypenny portfolio comprising 18 properties via the acquisition of WADI Properties.
The company also bought a 275,000 sq ft shed in Lutterworth, Leicestershire. The property was then sold under a sale-and-leaseback transaction, realising a profit on disposal of £5.4m, with a further £1.1m realised over the term of the lease.
Planning permission has also been secured for a 1.4m sq ft distribution park in Widnes, Cheshire, as well as residential development in Soho Square, W1.
Funds raised in the financial year will be re-invested in the portfolio, and a number of acquisitions are expected. The division has a target IRR for new acquisitions and developments of 20%.
Andrew Tinkler, Stobart Group’s chief executive, said: “Although a relatively new division in the Stobart Group structure, estates has already shown strong performance in identifying key operational assets for acquisition. Estates has also already made good progress in realising value and returns for the group.”
joanna.bourke@estatesgazette.com
