Despite posting a hefty £37.6m pre-tax loss, IM Properties, a major player in the UK property development scene, remains bullish about the future.

The losses are largely attributed to write-downs in their US portfolio and UK housebuilding division. This is a common theme in the property sector right now, with global events and rising interest rates making investors nervous. However, IM Properties highlights that their core UK business is performing well, and they’re seeing strong growth in key areas.

Big Projects, Big Plans

Despite the headwinds, IM Properties has been busy:

• They completed nearly 3 million square feet of commercial development in 2023, including Amazon’s massive £500m distribution centre at Peddimore.
• They secured £2.8m in rent through 19 new lettings, a 5% increase over the previous year.
• They have planning applications submitted for a whopping 4.2 million square feet of commercial development, including the next phase of Mercia Park and a proposed 600,000 sq ft expansion with DSV.

A Look Across the Pond

While the US write-down has been significant, IM Properties remains optimistic. Their flagship Brookfield Corners lifestyle scheme is seeing record leasing activity, and their joint venture, IMK Developments, is currently involved in eight projects across Illinois, Colorado, and Arizona, with a total estimated development value exceeding $1.2bn.

The Bottom Line

IM Properties, despite the recent losses, is a heavyweight in the property development world. Their focus on key UK markets, combined with their ambitious US projects, signals a company confident in its long-term strategy and prepared to weather the current market storms.