The property group behind the £80m regeneration of Hull’s Fruit Market and Flemingate in Beverley has hailed “another very successful year” boosted by increased rental income across its portfolio.
Hull-headquartered Wykeland Group operates a multimillion-pound property portfolio which includes Flemingate in Beverley, Bridgehead Business Park in Hessle and @TheDock in Hull.
The group reported total turnover of £10.4m for the year ending 31March 2018, up from £9.3m in 2016/17. Profit before interest, tax and exceptional items increased to £8.3m from £5.3m.
The group’s results excluding the Flemingate development show a profit before interest, tax and exceptional items of £7.5m on £7.7m turnover. This compares to a £4m profit on £6.9m turnover the year before.
Ian Franks, Wykeland Group finance director, said: “These results reflect another very successful year for the business. Our portfolio is 96 per cent let, with rental income showing encouraging growth and strong demand from blue chip brands to be part of our flagship schemes such as Bridgehead, Meltonwest and @TheDock.
“Excluding Flemingate, underlying group pre-tax profits in the year were £7.5m, compared with £4m the year before, and we are well placed for further growth in coming years.
“The bottom line profit figure reflects a write down in the book value of certain assets relating to our Flemingate centre in Beverley, offset by a profit resulting from the reorganisation of the Flemingate debt. Despite the weakness of the retail environment nationally, Flemingate is now 95 per cent let, with footfall growing by 18 per cent year on year.”
Wykeland’s core portfolio of about 1.7 million sq ft of office and industrial units was 96 per cent let during the year. The Flemingate development was more than 95 per cent let with footfall up 18 per cent on the previous year.
At the company’s Bridgehead site, the ERGO Centre, a joint development between East Riding of Yorkshire Council and the University of Hull, opened during the year, with land also sold to the university for the development of Project Aura, a research and development centre for the offshore wind sector.
In October 2017, Wykeland was appointed as development partner to Hambleton District Council to redevelop the 3.5 acre former prison site in Northallerton. The £17m Treadmills project, comprising retail, residential, leisure and office space, was given the green light in November 2018.
In December 2018, it sealed its largest ever land purchase with the acquisition of 230 acres at the Melton Park site that will enable it to expand its Meltonwest mixed-use business park.
Ian Franks added: “We have an exceptionally strong development pipeline, including what will become one of the largest business parks in the Yorkshire and Humberside region, following our recent purchase of the Melton Park site in East Yorkshire.
“Our joint ventures with Beal Homes and Hull City Council to regenerate the Fruit Market and with Hambleton District Council to redevelop the former prison site in Northallerton, North Yorkshire, are also making excellent progress.”
Source: Insider Media