Value of Cadogan Estate leaps to £5.2bn

Posted on 12 June, 2015 by Neil Bird

The value of Cadogan’s Kensington and Chelsea property estate has leapt to a new peak, the group’s Annual Report reveals.

ID:22844525

The results show that total returns for 2014 hit 17.2 per cent, contributing to a five year annual average of 15.9 per cent. Rental income increased by 6.5 per cent to £119.9 million, while the value of the group’s property assets jumped to a record of almost £5.2 billion.

The outstanding sector of the portfolio was offices, with an annual growth in value of 22.2 per cent. Retail enjoyed annual growth of 14.8 per cent, followed by residential which increased by 11.3 per cent. Rental growth and continuing yield compression was recorded across most locations.

“The business has enjoyed a successful year in 2014 with total returns of 17.2 per cent contributing to an annualised performance over the last five years of 15.9 per cent, which we focus on as a longer term measure,” said Chief Executive Hugh Seaborn.

“The success of Cadogan is allied to the strength of the London property market which performed strongly last year, both from an investment and an occupational perspective.”

The group has continued with its property management strategy of improving the quality of its assets through redevelopment and refurbishment, and has invested £100 million in new acquisitions. These include retail units in the Kings Road and Sloane Street, enabling Cadogan to enhance the retail offer of both streets.

Sloane Street has also benefitted from the rolling out of Cadogan’s five year strategy for the transformation of the public realm, designed to create a more welcoming environment for pedestrians.

This has involved extensive consultations with the Royal Borough of Kensington and Chelsea along with local businesses and retailers. Cadogan is looking forward to continuing this process ahead of the implementation of the proposals over the coming years.

Discussing the performance and the future prospects of the group, Hugh Seaborn said: “In the retail sector, retailers are improving their understanding of how physical space fits within their overall multichannel strategies.

“When they seek a physical presence they are becoming more discerning about the location, quality and overall ‘experience’ provided by the space they take and this benefits our strong retail locations and ability to manage the area cohesively.

“We have new and refurbished office space coming onto the market in 2015 and are confident that we will be able to let this on good terms and at attractive rents given the strength of demand across London and the increasing desire for businesses to provide a great ‘lifestyle’ location for their staff.

Seaborn concluded by saying that Cadogan remains confident that their long-term strategy will continue to deliver consistent and attractive returns throughout 2015 and beyond.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants