Grosvenor Group, the luxury property business owned by the Duke of Westminster, has announced its first loss since the financial crisis in 2008. The company’s performance was negatively impacted by a significant decline in property values and losses from its retail operations. In 2020, Grosvenor reported a pre-tax loss of £311 million, a sharp drop from its £156.5 million profit in 2019.
One of the key factors contributing to the loss was the decrease in the value of Grosvenor’s property portfolio, which fell by £400 million to £6.7 billion. This decline was partially a result of the sale of some assets in the UK. Additionally, the company faced income shortfalls as tenants struggled to pay rent during the initial UK lockdown from March to May 2020. However, Grosvenor managed to collect 89% of the rents due in 2020 by 31 January, a higher percentage compared to many other property firms. This figure rose to 95% when taking into account Covid-19-related concessions.
Despite the challenges, Grosvenor remains positive about its future and anticipates a strong recovery over the next two years. The company emphasized its financial capacity to support tenants and communities during the pandemic, as well as its ambitious long-term plans to contribute to economic recovery. CEO Mark Preston acknowledged the poor financial performance in 2020 compared to historical standards but praised the resilience of the company and its employees during these unprecedented times.
Grosvenor has also made strides in pursuing its growth plans. It obtained planning permission for the South Molton Triangle, an eco-friendly mixed-use development in London’s prestigious West End. The company has also focused on improving the resilience of its retail assets in Liverpool, with its Liverpool One project surpassing sales and footfall expectations.
With a strong financial capacity of £1.7 billion, Grosvenor is well-positioned to seize investment opportunities and continue executing projects that have a positive social impact. Despite the challenges faced in 2020, the company remains committed to its long-term objectives and has an optimistic outlook for its future prospects.
Useful links:
1. Grosvenor Group Official Website
2. Financial Times Article on Grosvenor’s Losses
