The Duke of Westminster’s property company Grosvenor Group has published results that show how the pandemic knocked profits in 2020.
The privately owned group, which has a £6.7 billion global real estate portfolio including sites in Belgravia and Mayfair, reported its first negative return since the financial crisis of -2.9%.
During the year it saw a decline in some retail property values, and it offered support measures to some tenants to help them ride out the virus crisis, such as rent holidays and discounts.
Revenue profit, which strips out the impact of property revaluations, dropped to £25.4 million from £65.9 million. A pretax loss of £310.8 million was recorded, compared to a pretax profit of £156.5 million in 2019.
But as lockdowns ease the company should see improved footfall across the estate.
In London, upcoming projects include the South Molton Triangle where the firm will create 58,000 square feet of shops, restaurants and cafes. There will also be new offices.
Chief executive Mark Preston said: “Tenants want flexible space that can adapt to their needs and have a clear preference for highly energy efficient buildings with excellent environmental credentials.”
He added: “Our strong financial capacity, remaining at £1.7 billion, gives us the strength and flexibility to capitalise on investment opportunities, as well as the confidence to continue delivering longer-term projects with a strong social impact.”
Dividends paid during the year amounted to £47.5 million, up from £46.3 million.
