Warwick-based IM Properties is forecasting record results this year as investment and new development initiatives taken in 2005 begin to contribute to the company's bottom line.
Increased investment in office and distribution sectors in mainland Europe and in the UK with its first acquisition in the City of London - together with lettings and land sales at new developments - are set to top all previous forecasts of profitability in 2006.
Posting results for the year ending December 2005, pretax profits were £27.9 million compared with £37.2 million the previous year.
With 2005 total investment transactions amounting to £84 million - and acquisitions taking the edge over disposals - IM Properties clinched Grade A office holdings of 280,695 sq ft in Worcester, Milton Keynes, Warrington, Livingstone and London. Office sector acquisitions represented almost 60 per cent of total activities.
Perusing a continuous appraisal of mainland Europe opportunities, the company increased its assets by 41,442 sq ft in France with the acquisition of an office complex in Lyon for 6.1 million euros (£4.23 million).
IM Properties managing director Mike Adams said: "We have the building blocks in place to capitalise on a year of raising the quality of our investment stock and through a succession of rewarding deals on new developments which will contribute to record results in 2006.
"Our rolling programme into mainland European will benefit from our enhanced understanding of relatively sophisticated markets and from maintaining sources of good supply through strengthening our relationships with locally based professionals."
IM's development team completed deals of 1.1 million sq ft on 78-acres at the 400 acre Birch Coppice Business Park at junction 10 of the M42 motorway, achieving industrial rents of £5.31 per sq ft and land sales of £415,000 per acre.
UPS - the world's largest package delivery company - is soon to start development of a regional distribution hub of 300,000 sq ft on a 24 acre plot.
Helping to put Birch Coppice firmly on the strategic UK rail freight map was the planning approval to develop the 35-acre Birmingham Intermodal Freight Terminal (BIFT) - the region's largest specialist container handling railhead.
In the first six months of this year IM's cross channel acquisition programme has rolled into Germany with the purchase of four distribution hubs f or 31.6 million euros (£21.9 million).
In the domestic market a first move into London's financial quarter with a blue chip covenant on a 44,107 sq ft global communications centre was secured for £18.6 million.
"We continue to evaluate opportunities in our cross border expansion. I am confident our actions will achieve records in our 2006 results," Mr Adams added.