Bruntwood has reported a resilient operational performance for the year to the end of September as it highlighted continued investment across its UK town and city portfolio.
The property investor and developer reported an £18.6m operating profit for the period, which it said reflected the strength of its core town-centre workspace portfolio and services businesses, and an overall loss before tax of £12.9m, a significant improvement on the £73.7m loss reported in 2024.
The overall loss largely reflected Bruntwood’s £21.5m share of joint venture losses, driven by development write-downs linked to construction cost inflation of around 40% since 2022 and continued yield pressures.
The improved performance was supported by stable valuations across its wholly owned Bruntwood Places portfolio, which reported no valuation losses during the year.
Total assets under management across Bruntwood Group’s wholly owned assets and joint ventures increased from £1.8bn the previous year to £1.9bn.
Occupational demand remained robust, with around 455 new customers and 900,000 sq ft of lettings completed across the group during the period, including joint ventures.
Bruntwood said this reflected a “flight to quality” as occupiers increasingly prioritise well-amenitised workspace to support productivity and office attendance.
Chris Oglesby, chief executive of Bruntwood and Bruntwood SciTech, said: “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 past 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.”
To meet demand, Bruntwood invested £16m into its Bruntwood Places portfolio, including refurbishment projects across Manchester, Liverpool, Salford, Warrington and Cheadle.
In Liverpool, the refurbishment of Exchange Court provided 12,500 sq ft of premium office space alongside new coworking and hospitality provision.
Meanwhile, Bruntwood SciTech continued to expand its innovation-led portfolio, investing £156m during the year and completing schemes with a combined gross development value of £245m. Its portfolio now totals £1.6bn across 5.8m sq ft, serving around 1,500 high-growth businesses.
Oglesby said 2025 had been “a pivotal year for Bruntwood, characterised by strong operational execution and strategic investments positioning us for sustainable long-term growth”.
He added: “Despite navigating a complex global economic landscape, our core business units have demonstrated resilience and adaptability.
“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.”
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