Projects in the central belt and closer to home have helped deliver bigger profits and turnover at James Barrack’s Knight Property Group.
Mr Barrack, founder and chairman, told The Press and Journal accounts for the 12 months to December 31 2023 reflected a “really good year” for the Aberdeen-headquartered business.
And the 56-year-old property veteran described the Granite City’s commercial property markets as strong, “especially on the industrial side”.
There are some firms putting their property plans on hold until after the general-election but longer-term growth prospects in Knight’s home city are good, he said.
Knight’s been growing since 1987
Mr Barrack and his father, Hamish, launched Knight in 1987.
The business has grown substantially since then, both through acquisitions and geographical expansion to other parts of Scotland.
It operates across the logistics, office, industrial and trade counter sectors.
Geographic expansion strategy
Economic woes in its home city over the past 10 years have led to an increased focus on opportunities in Edinburgh and the Glasgow area.
This has benefitted the company’s bottom line and the strategy paid off again in 2023.
Knight said Belgrave Logistics Park – its award-winning speculative logistics development in Bellshill, North Lanarkshire – had experiencing strong demand.
The firm added: “We concluded our third and fourth lettings to supply chain solutions giant, Wincanton and distributions and outsourcing company Bunzl.
“With only one unit of 35,000sq ft now remaining available, this is a positive vote of confidence in our strategy of committing to the speculative development of the best units in the best locations across Scotland.”
Speculative development continues at Bellshill, with a planning application submitted for a single industrial-logistics unit extending to 70,000sq ft.
If approved, Knight hopes to start construction this autumn.
The firm recently completed construction and pre-letting for a second phase of speculative development, a 28,585sq ft warehouse, at Langlands Commercial Park in East Kilbride.
Knight said it remained “particularly active” in and around Aberdeen.
It recently completed and delivered two new 20-year pre-let developments in the area.
At the Hub in Tullos, Aberdeen, it completed a £10 million, 27,976sq ft car showroom, workshop and storage facility for TrustFord.
And at Kingshill Park in nearby Westhill the group developed a £7m, 21,500sq ft DIY superstore for home improvements giant Wickes. The store is due to open in August.
Current projects for the firm include the speculative development of a 4,400sq ft industrial unit on Exploration Way, Westhill, next to the new Wickes.
It is slated for completion in the third quarter of 2024.
Knight has also embarked on a refurbishment scheme at Cults Business Park, where it it is developing a total of eight single-story industrial buildings and two detached units.
In Edinburgh, two 10-year deals for more than 22,000sq ft of office accommodation have been secured at 4/5 Lochside Avenue. Knight reported “strong interest” in the remaining space.
Supporting charitable causes continues to be a priority for the firm through its support for The Barrack Charitable Trust. About £150,000 was donated to 36 charities in 2023.
Multiple north-east charities supported by Barrack trust in 2023
Good causes supported in the north-east include Camphill Rudolf Steiner School, Maggie’s Aberdeen, Sunrise Partnership, VSA and The Charlie House Big Build Appeal.
Mr Barrack, named entrepreneur of the year at the 2019 Elevator Awards, said: “This was another busy and productive year.
“We can be proud of the solid performance achieved by the business in 2023.
Knight ‘positive and optimistic’
“Teamwork and hard work have been key to our success during these uncertain economic times for everyone in the property sector. We remain committed to speculative development in the industrial and logistics sectors across Scotland. As a company, we are in a good place and remain positive and optimistic about the future.”
Knight reported “healthy” turnover of £22.3m for last year, slightly up on the £22.2m achieved in 2022. Meanwhile, pre-tax profits grew to £2.7m, from £2.2m previously.
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