Developer announces tie-up with Build to Rent partner in first set of results since relaunch

Morden Wharf

Developer U+I has reported pre-tax profit of £25.8m for the year to February 2016, down from £34.8m the previous year.

U+I said profit was impacted by a reduction in revaluation gains, foreign exchange movements and one-off costs from the merger of Development Securities and Cathedral Group, which created U+I.

The developer is aiming to build a portfolio of larger regeneration projects and announced that it has signed heads of terms with an unnamed UK-based partner to create a Build to Rent platform.

The firm also reported that in joint venture with funding partner Proprium it has now secured ten acres of land in Charlton and aims to put forward proposals for a residential-led regeneration project shortly.

U+I has also recently won two public private partnership projects - the £100m mixed-use Cockpit Yard project in Holborn, London and a £380m regeneration project in partnership with the London Fire and Emergency Planning Authority (LFEPA) at 8 Albert Embankment - as well as a spot on TfL’s property development framework in partnership with Notting Hill Housing Trust.

U+I chief executive Mathew Weiner said the firm was making progress in its targets of delivering 12% post-tax total returns.

“Despite dampened wider economic conditions, we remain focused on our vision: to deliver sustainable returns to shareholders as we create long-lasting social and economic change in the places we develop,” he added.