Oakburn. Annual Report

Transcription

1 Oakburn Annual Report

2 Directors Report If the macro economic climate in 2010 was tough, it proved no easier in 2011 and indeed showed greater instability in Europe. Against this the German economy continued to be strong and whilst the UK remained in a recessionary mode Oakburn s market sector remained stable. The continued stability of interest rates has encouraged the Board to open discussions with its UK bank, RBS and we are working to restructure our existing facilities into a longer term commitment. We continue to maintain good relationships with RBS and BerlinHannoversche Hypothekenbank AG, our main bankers. The year to 2011 has seen a maintenance of strong income flows and excellent progress in our German portfolio. Our analysis of the market in last year s report remains basically the same except for the exceptional strength of the London residential market. Tax changes announced by the Government post our accountancy period has somewhat flattened further growth in demand at the super prime and prime end of the London residential market. The difficulty for the Board at the moment is being able to predict with any certainty the shape of markets in the future because of the serious financial issues affecting Europe and the Eurozone, an uncertianty most likely to continue through into at least MILLIONS (UK S) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, Mar Dec Dec Dec Dec Dec Dec 2011 PERIODS

3 Directors Report continued We continue our record of unbroken growth for the 15th year now, with solid income growth and a strengthening of our underlying assets through careful management, refurbishment and focused strategies. Once again we have made no new purchases in the financial year 2011 and our consolidated income is now well over the 1 million level. Our income has doubled since There has been a modest increase in our net asset value from million to million over the same period. The Company has gross assets of million ( million) and net assets of million ( million). With income up by just over 9%, profits on ordinary activities before taxation were stable, up on last year s figure by 10%. We have started to put into place a major strategy review for Grainger House, Newcastle which has resulted in most of our retail space going under offer. In Germany, the work we have carried out at our investment in Neumunster has resulted in the investment becoming fully let for the first time since our ownership. We have completed a lease extension to Fressnapf at our Dessau investment. All these investments by the Company will, in our view, enhance the underlying strength of our asset value and are continuing to show a beneficial effect on income and asset values. Our investment in the refurbishment of the majority of our apartments at Fairfax Court, Swiss Cottage / St. Johns Wood in London has already paid off handsomely for the company. Germany Neumunster Douglas Blausten Director Simon Blausten Director London Mayfair, office refurbishment programme

4 An Introduction Oakburn Properties was founded in 1959 and originally formed part of a post Second World War urban regeneration development programme undertaken by Cyril Blausten ( ). He, together with his brother Leonard and other partners, built over 1000 houses and apartments in central London, together with office, retail and industrial developments totalling over 1.5 million square feet (145,000 square metres) throughout the United Kingdom in a post war development surge. Investing in European Real Estate, directly and indirectly and in Wealth Management for long term growth based on a proven track record.

5 Who we are Oakburn itself was created to start the first stage of a 6 hectare development site close to Central London in the high class residential and commercial location of St John s Wood and Swiss Cottage in North West London on the Eyre Estate (below) a landed family estate owner. The regeneration development included over 135 apartments and town houses and a 37 retail unit shopping centre. The main company, the Winglaw Group, also undertook a further 8 hectare retail, office and residential regeneration development in London s prime district of Kensington. The Winglaw Group was sold to a public group in the 1970 s but Oakburn was retained as an asset within family trusts. In 1978 Douglas Blausten became a director and was joined by Simon Blausten in The two brothers then became the sole Executive Directors and remain in that position to the present day. The Company adopted plc status and a group of private investors took up an issue of new shares followed by a further major issue to a public company, the Wyndham Group. Steadily the investment portfolio was built in the UK with further investments in Manchester, Newcastle, Plymouth, Portsmouth, Exeter, Nottingham, West Bromwich, Rushden, Chichester, Liphook and Canterbury. In the early 1990 s it acquired back 20% of it s stock and sold a portfolio of properties to Great Portland Estates plc in a cash and share transaction. In 1996 it floated a trading subsidiary on the Alternative Investment Market (AIM) Grosvenor Land Holdings plc, retaining a controlling shareholding and through Grosvenor built a 750,000 square feet (70,000 square metres) Commercial Business Centre portfolio.

6 Grainger House A Grade II listed retail and office Investment in the Grainger Town city centre area of Newcastle. We are implementing a long term strategy for this 20,000 square feet investment which commenced in late There are 15 owned properties in the portfolio with a value exceeding UK 30.5 million and a gross built area of over 250,000 square feet (23,500 square metres) on over 365,000 square feet (34,300 square metres) of land

7 Oakburn Properties plc has been taken private in a contested takeover valuing it at 9 million Corbett Keeling advised the bidder on the takeover 2004 Residential refurbishment updating our London stock In 2003 Oakburn was a debt free concern and became subject to a public takeover offer for the three public companies making up the Group. The Executive Directors won the publicly contested takeover and completed a Management Buy Out in early 2004 jointly with Terrace Hill Group plc. Terrace Hill took over Grosvenor Land and its controlling stake in Abraxus Investments plc and Douglas and Simon Blausten through their bid vehicle took 100% ownership of Oakburn Properties and its wholly owned subsidiaries. Since 2004 Oakburn, as a private company once again, has built an Anglo German investment portfolio and has started to build a portfolio of indirect real estate investments in addition. Oakburn Properties now forms part of the Oakburn Group whose other interests include Wealth Management, a Document Retrieval business and single partnership direct investments in properties.

8 OAKBURN GROUP CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2011 CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER TURNOVER Continuing operations Discontinued operations 1,217,331 1,111,452 FIXED ASSETS Tangible Assets INVESTMENTS 30,500,000 30,500, , ,000 COST OF SALES Continuing operations Discontinuing operations 530,082 1,217,331 1,111, ,580 CURRENT ASSETS Debtors Cash at bank and in hand 66, ,882 99, , , ,429 99,770 GROSS PROFIT Net operating expenses 687, , ,872 92,223 CREDITORS Amounts falling due within one year 388, ,117 OPERATING PROFIT Continuing operations Discontinued operations 582, ,649 NET CURRENT LIABILITIES 171,896 31,171, ,347 30,785,653 Interest payable 582, , , , , ,574 CREDITORS Amounts falling due after more than one year NET LIABILITIES 19,329,759 11,842,137 19,075,301 11,710,352 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION Taxation PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION Dividends 370,065 92, , , ,075 88, , ,000 CAPITAL AND RESERVES Called up share capital Share premium Revaluation reserve Profit and loss account 2,223,732 1,944,162 5,327,409 2,346,834 2,223,732 1,944,162 5,327,409 2,215,049 PROFIT for the financial year 121,841 87,028 SHAREHOLDERS FUNDS 11,842,137 11,710,352

9 Dessau Retail Park Retail Investment let to Fressnapf The retail park is situated on the A9 autobahn junction for the city of Dessau Madgeburg. The anchor for the retail park is a Kaufland superstore. Oakburn owns a purpose built Etap (part of the Accor group of France) hotel together with additional land for further development; a drivein McDonald s restaurant and a Fressnapf pet food supermarket (part of a major pet food supermarket chain). The retail unit is 900 sq m. We are currently working with our tennant to extend and modernise this retail outlet. Completion is expected in Solihull, Birmingham Blythe Valley Park is an outstanding development and when complete will provide 2 million square feet (188,000 square metres) of Grade A office space. Current occupiers are Oracle, British Gas, Arup, Siemens, Uk Athletics, Regus, Infor, Googman Logistics and Virgin Active. The development is set in 250 acres of parkland adjacent to the M42 Motorway and close to Birmingham International Airport and Rail Terminal. Nelson House is an air conditioned grade A office building completed in 2008 which provides 14,792 square feet (1,374 square metres) of net lettable office space arranged over three floors. The property is let to Goodman Logistics Developments (UK) Limited with a guarantee from Goodman Funds Management Limited for a term of 15 years from June 2008.

10 Leipzig Logistics Headquarters This is a modern logistics unit on one of Leipzig s industrial parks and is the distribution headquarters for J.C. Decaux which operates the major contract for advertising and street furniture for the City of Leipzig. The site covers 6,625 square meters including fully serviced land for future development. Oakburn Properties Ltd. 22 Gilbert Street Grosvenor Square London W1K 5EJ United Kingdom T +44 (0) F +44 (0) Oakburn Properties GmbH Pettenkoferstr München Deutschland T F Oakburn Properties Ltd Registered Office: The Ground Floor, Suite G1, Buckingham Court, 78 Buckingham Gate London, SW1E 6PE Registered No Umbrella Design Limited Cert no. SGSCOC2315