North East Adderstone Group eyes continued success in the new year

The sale of a sustainable office complex and the launch of a new luxury apartment development has seen strong end-of-year trading for North East Adderstone Group as it eyes continued success in the new year with a full pipeline of work.

The Newcastle-based property investment and development business, has issued accounts which reveal that the strategic focus on commercial investments and affordable housing has paid dividends.

Revenues are up from £22.3m to £26m over the last 12 months, with inflation and strong demand driving significant rental growth. Post tax profits of £5.7m reflect strong resilience despite uncertainty around capital values and the impact of increased finance costs.

The £11m sale of the Rivergreen Centre in Aykley Heads to Durham County Council has been among the highlights for Adderstone Group in recent months, paving the way for the demolition of the former County Hall building and allowing work to commence on the Durham Innovation District at Aykley Heads.

The launch of Hanover Point in Clavering Place, close to Newcastle’s regenerated Stephenson Quarter, has been another highlight in a busy year. The development has delivered 10 of Newcastle’s highest value apartments, across eight levels and situated within a gated, landscaped courtyard, boosted by panoramic views across the Tyne and its iconic bridges.

The Group’s financial performance has also been boosted by the ‘remarkable’ growth of its affordable housing division, Adderstone Living. Established in 2020, the division has seen turnover double from £5m to £10m in the last year and is on target to double again to £20m in the current financial year.

With over 1 per cent of people in Newcastle’s urban areas already living in homes developed by Adderstone Group, the 347 homes currently under development in the 2023 financial year end are set to add to this impressive figure.

Michael Shipley, group chief financial officer, remains optimistic about the future. He said: “Having focused mainly on paying down debt and building our affordable housing division, we feel well positioned to navigate any further uncertainties that emerge in 2024/5 as well as capitalise on opportunities as the economy improves.”

By Mark Adair – Correspondent, Bdaily

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