Operator of Liverpool city region science and innovation campus Sci-Tech Daresbury reports surge in profits thanks to higher occupancy in its 3m sq ft portfolio. Tony McDonough reports
Commercial property owner and operator Langtree is reporting annual pre-tax profits of £5.3m for 2021/22 – more than double the £2.3m reported for 2020/21.
Langtree operates 3m sq ft of commercial space including Liverpool city region science and innovation campus Sci-Tech Daresbury. It is also behind the £100m Parkside logistics scheme that will play a key role in the Liverpool city region Freeport.
Its estate, which covers the North West, Yorkshire, the Midlands and the South West is valued at £530m. Occupancy currently stands at 92% and annual rental income is £23m. In August it was revealed that three current occupiers at Sci-Tech Daresbury were increasing their space and creating 100 new jobs.
Warrington-based Langtree manages much of the estate on behalf of other owners such as institutional investment funds. Its own assets have seen a 45% increase in value in its 2021/22 fiscal year to £16.4m. Gross development value of assets under control now exceeds £1bn.
Chairman Tim Johnston said: “This is a very strong set of results delivered by an exceptional team in every part of the business. Many of our office and laboratory tenants work in collaborative industries where their teams value immediate access to colleagues.
“So we found much less of the ‘voluntary absenteeism’ that affected other managed estates during and after the pandemic. And so we have not been materially affected by the anticipated impact on commercial real estate of increased home working.
“Our overall occupancy increased as a result of the strong letting performance of our three speculative office buildings, known as Violet, at Sci-Tech Daresbury. These are now 86% let and achieving record rents.
It’s given us the confidence to push ahead with a further 53,000 square feet of new offices and laboratories.”
His report goes on to highlight the continued growth in the company’s partnership business with local authorities. It noted Langtree’s appointment during the year by Halton Council to support the Astmoor Regeneration initiative.
This phase will see up to 180,000 square feet of industrial space developed on 20 acres of land following the completion of the Mersey Gateway bridge.
Its joint venture with Warrington Council, called Wire Regeneration, also stepped up a gear with confirmation of the creation of a new digital hub at St James Business Centre. There will also be the start of construction of the new bus depot in the town centre to free up further development land on Wilderspool Causeway.
At Parkside in Newton-le-Willows final preparations are underway to appoint a contractor to begin to deliver the 1m square foot first phase. Work on the Parkside Link Road, linking the site directly to J22 of the M6 motorway, is now well under way.
A significant bonus for the project is the site’s recent confirmation as the largest of three tax and customs sites for the emerging Liverpool Freeport.