The Crown Estate has today announced another record breaking year with the value of its portfolio hitting an all-time high.
The business reports very strong results across the portfolio, with asset management and place-making underpinning the performance in the development, office and retail categories.
The Crown Estate’s development pipeline is the largest in the business’s history, with 615,000 sq ft currently onsite in the West End.
Meanwhile, the office portfolio has continued to benefit from the on-going delivery of high-quality space in the strong occupier markets of Regent Street and St James’.
Furthermore, an additional 400,000 sq ft of office space will be coming to the market over the course of the next year, with 50 per cent of the total core West End supply being delivered by The Crown Estate.
In the West End retail category, The Crown Estate’s portfolio is 100 per cent let with significant lettings over the year including Uno de 50, Hunter, Goat, Michael Kors, Bike Rooms, Arc’teryx and La Martina.
The regional portfolio further underpins the strong performance in the sector with voids of just 2 per cent. The Crown is now one of the largest direct owners of prime regional retail parks with its portfolio valued at £1.5 billion.
Over the course of the coming 12 months the business will focus on introducing the progressive management strategy that defines its West End estate to the regional retail portfolio.
The strategic land, aggregates and offshore wind sectors of the portfolio also enjoyed a very good year.
Overall, the year saw nearly £1 billion of capital activity, comprising £326.9 million in acquisitions and other investments, and £179.1 million in development and asset management. Disposals totalled £451 million.
The strong performance delivered a record return to the Treasury of £285.1 million, up by 6.7 per cent on the previous year, and by 50 per cent over ten years. Capital value hit an historic high of £11.5 billion, up by 16.1 per cent, and the value of the Crown’s property portfolio increased by 16.7 per cent to an all-time high of £11 billion.
The total return for the year was a market beating 20.8 per cent, taking the 3 year total return to 17.3 per cent and the 5 year figure to 17 per cent.
Sir Stewart Hampson, Chairman of The Crown Estate, said that the record breaking results prove that a long term outlook, and active asset management in its core sectors, ensures the business remains an ‘outstanding success story’.
Chief Executive Alison Nimmo, said: “This year we’ve continued on the path of success, outperforming the market and delivering significant values beyond financial return.
“Over ten years we have nearly doubled the value of the business by delivering world leading business destinations and 21st century retail experiences, driving investment in the UK’s renewable energy and actively managing one of the nation’s largest rural land portfolios.”
