Teamwork and hard graft are helping Knight Property Group overcome “challenging times” for the industry, the Aberdeen firm’s boss has said.
James Barrack, Knight’s founder and chairman, told The Press and Journal there seemed to be no shortage of potential tenants of Scottish commercial property just now.
But businesses willing to back new building projects are thin on the ground, he added.
Knight’s strategy of maintaining a diverse mix of new developments and managed properties is paying off, the 55-year-old entrepreneur said.
The company reported a “solid” financial performance in the 2022 calendar year.
‘Healthy’ turnover
It said it achieved “healthy” turnover of £22.2 million, up from £21.5m in 2021.
Higher interest payments on bank loans and overdrafts, driven by rising inflation, caused pre-tax profits to fall by about 15% to £2.2m. But operating profits were “maintained” at £3.9m.
Mr Barrack said: “Teamwork and hard work have been the key to our success, during challenging times for everyone in the property sector.
Market conditions ‘remain tough’
“We continue to monitor market trends and remain committed to further speculative development in the industrial and logistics sectors across Scotland. Although market conditions remain tough, we have a highly experienced team in place and continue to remain optimistic for the future.”
The firm’s highlights of the year included Mr Barrack winning a business leadership gong at the Scottish Property Awards. He received his accolade in front of about 700 fellow industry professionals at a ceremony in Glasgow.
There was more success for the firm at this year’s Scottish Property Awards, when it scooped the development of the year (commercial buildings) title.
Knight said the accolade recognising its work at Belgrave Logistics Park in Bellshill, Lanarkshire, had reinforced its “drive and commitment” to sustainable development.
Projects completed by the company during 2022 included phases one and two of Belgrave Logistics Park and phase four of Langlands Commercial Park in East Kilbride.
Aberdeen project taking shape
A third and final phase of speculative development at Belgrave Logistics Park is “progressing well”, with completion of the 126,960sq ft unit scheduled for September.
Knight has committed to further speculative development at Langlands, with work on a single industrial unit of 30,000sq ft, due to commence shortly.
Meanwhile, Knight is also developing a bespoke five-acre facility, The Hub, in Aberdeen.
The West Tullos Industrial Estate development is already pre-let to TrustFord, which is due to open a modern new vehicle showroom and workshop there. A handover is expected towards the end of this year.
Other north-east projects include a store for home improvement giant Wickes in Westhill.
Knight said it had completed “strategic property sales” across its Scottish portfolio in the industrial, retail and office sectors.
Supporting charitable causes continues to be a priority for the firm through its support for The Barrack Charitable Trust. Around £100,000 was donated during 2022 to 30 charities throughout Scotland, including Riding for the Disabled, Aberdeen Independent Multiple Sclerosis and the Edinburgh King’s Theatre.
“We also continue to support the Charlie House ‘Big Build’ Appeal in Aberdeen, Knight said.
Mr Barrack and his father, Hamish, launched Knight in 1987. The business has grown substantially since then, both through acquisitions and through geographical expansion to other parts of Scotland.
