Adderstone Group grows investment portfolio to £115m despite pandemic challenges


Property firm Tyneside Adderstone Group has released accounts showing how it grew its investment portfolio to £115m last year, despite the challenges of the pandemic.

The Newcastle-based group, which is made up of more than 50 legal entities, released figures for the financial year ending March 31, 2021, saying it had increased its net assets by £4.2million.

Adderstone has increased its asset base through a combination of redevelopments and acquisitions, including retail warehouses at Middle Engine Lane in Silverlink, Victoria Retail Park in Hull and Great Eastern Square in Felixstowe.

Read more: Find more information on North East affairs here

After the end of the year, the company also acquired St Ann’s Quay, a freehold mixed-use property comprising 32,000 square feet of office space on Newcastle Quay, Thomsen Retail Park in Sunderland and Haughton Retail Park in Darlington. It has also completed its Pipewell Quay and Tyne Bridge House developments on Gateshead Quays which will now provide new headquarters for Aspire Technology Solutions Ltd and The Great Run Company respectively.

Taking into account recent developments at Baker’s Yard in Gosforth, Dean Street Arch and Keel House in Newcastle city centre, Adderstone has secured new commercial leases totaling 100,000 square feet over the past 12 months.

The group also launched Adderstone Living during the accounting period, to offer ‘land-led’ developments to registered housing associations. The newly incorporated company completed three developments in its first year, completing 34 homes in partnership with North Star Group and Karbon Homes.

A further three deals were completed after the end of the year which will see the new company deliver 198 homes with a gross development value of £30m in partnership with Places for People, Karbon Homes and Thirteen Group.

The group is also advancing its development of luxury apartments at Hanover Point in the Stephenson area and a 1,118 student campus at Manors in partnership with Blackstone’s iQ Student Accommodation (iQSA). The group also expects to secure a detailed planning agreement for a luxury apartment development in Low Fell, Gateshead.

Group Chief Financial Officer Michael Shipley said: “Despite the obvious challenges of the pandemic, we have been able to pursue our ambitious growth plans with the support of our lenders.

“We had a very active year with a record number of transactions, growth of our commercial real estate portfolio by more than 60% in 2021, with the addition of 13 quality assets and a strong mix of prime tenants. .

“Coupled with our in-house development team who added significant value to the growing asset base through numerous refurbishments, extensions and conversions, this has proven to be an exciting and productive year for the business.

Mr Shipley’s comments came as accounts were also published for Adderstone 1993 limited, part of the group that includes Adderstone Living Ltd, Adderstone Asset Management and around 15 of the company’s subsidiaries. The accounts showed revenue growth from £2.95m to £6.15m, while operating profit also rose slightly from £1.594m to £1.597m.

The accounts add: “Despite the challenges of the period and after the end of the year, following the Covid-19 pandemic, significant progress has been made in this regard, with the value of the portfolio increasing by more than 20 million during the year and another £23 million after the end of the year.

Sign up here to get the weekly commercial real estate newsletter delivered to your inbox every Thursday

Previous CrowdStrike Launches $100M Falcon Fund II Investment Vehicle for Tech Innovators
Next Crypto can be a small part of one's investment portfolio, says Dave Ramsey