Boss Chris Oglesby says ‘rental growth is at levels I haven’t seen in my 35 years working across our city regions’
No. 3 Circle Square in Manchester is one of Bruntwood SciTech’s key Manchester city centre developments(Image: Bruntwood SciTech)
Bruntwood has slashed its losses in a “pivotal” year for the North West property group as it continued its growth plans despite turbulent economic conditions. The group reported a loss before taxation of £12.9m, a big improvement on the £73.7m reported last year.
Total assets across the Bruntwood group’s own portfolio and its joint ventures now stands at £1.9bn, up on last year’s £1.8bn, while operating profits stood at £18.6m.
Bruntwood said valuations were stable at its wholly-owned Bruntwood Places arm, and that its pre-tax loss “largely reflects a £21.5 million share of joint venture losses, driven by development write-downs amid higher build costs (up around 40% since 2022) and continued market yield pressures”.
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Demand was strong through the year, with the group completing more than 900,000 sq ft of lettings transactions and welcoming 455 new customers across its portfolio. In its results statement, Bruntwood said: “This activity reflects the continued flight to quality, with businesses increasingly recognising the value of well-amenitised workspace in driving productivity and encouraging employees back to the office”.
During the year the group completed the refinancing of its club bank facility for its Bruntwood Places portfolio with Santander, HSBC, NatWest and Barclays. The facility was extended by £90m and 12 months, allowing the repayment of retail bonds due in February 2025, while providing £29m of undrawn commitments and giving what Bruntwood called “a comfortable level of covenant headroom as at 30 September”.
Bruntwood Places investment
Over the year, Bruntwood invested £16m in its Bruntwood Places workspace portfolio, including £6.2m in its wholly-owned office portfolio and another £9.8m through town centre joint ventures with Trafford and Bury Councils. Places now includes £240m of workspace, with an £84m portfolio of town centre regeneration projects, serving some 800 customers.
Work in the wholly-owned portfolio included refurbishments of South Central in Manchester city centre, Station House in Altrincham, Landmark House in Cheadle, Wilderspool in Warrington, and Exchange Court in Liverpool.
Bruntwood SciTech invests £156m over year
Bruntwood SciTech, Bruntwood’s tech-focused joint venture with Greater Manchester Pension Fund and Legal & General, invested some £156m across its portfolio over the year.
It completed schemes with a gross development value (GDV) of £245m, including No.3 Circle Square and Citylabs 4.0 in Manchester, No.1 Birmingham Health Innovation Campus, and West Village in Leeds. Meanwhile work on the Greenheys laboratory building at Manchester Science Park, home to UK Biobank, is set to complete in Spring 2026.
Bruntwood SciTech’s portfolio now stands at £1.6bn of schemes over 5.8m sq ft of space. Since the financial year end, work on the £30m work to transform Pall Mall in Manchester city centre has been completed, with 120,000 sq ft of space. Bosses want the business to grow to a £5bn portfolio by 2033 and it already has a 3m sq ft development pipeline. That includes the Sister joint venture with the University of Manchester, Hemisphere in Liverpool through the Sciontec joint venture, and Birmingham Health Innovation Campus with the University of Birmingham.
How the Greenheys building at Manchester Science Park will look(Image: Bruntwood SciTech)
Chris Oglesby, CEO of Bruntwood and Bruntwood SciTech, said: “2025 has been a pivotal year for Bruntwood, characterised by strong operational execution and strategic investments positioning us for sustainable long-term growth. Despite navigating a complex global economic landscape, our core business units have demonstrated resilience and adaptability.
“In the office sector, it has been a tale of two halves. While capital markets have faced significant headwinds with yield-driven valuation reductions of around 35% across the wider market over the last two-and-a-half years, occupational markets have been incredibly strong. Rental growth is at levels I haven’t seen in my 35 years working across our city regions, and businesses increasingly recognise the value of quality workspace in driving productivity.
“Our investment in our wholly owned portfolio and joint ventures reflect our conviction that for cities to thrive, they need a network of thriving towns. The opening of King Street in Stretford and continued progress at Stamford Quarter demonstrate our commitment to consultation-led regeneration that delivers lasting benefit for local communities.
“Looking ahead, we are well-positioned to capitalise on emerging opportunities. We end the year with a strong balance sheet, diversified revenue streams and a commitment to innovation – all of which provide a solid foundation for future growth.”