Grosvenor can’t escape effects of Europe’s austerity measures
The firm is owned by the Grosvenor family, which holds the Duke of Westminster title. The current patriarch is Gerald Cavendish Grosvenor, listed as Britain’s fourth richest person on The Sunday Times Rich List 2011.
Government austerity measures which hit consumer spending in Europe saw Grosvenor’s returns, based on rental income and property prices, fall from 10.9 per cent in 2010.
Advertisement
Hide AdAdvertisement
Hide Ad“The outlook is far from certain and we expect the coming decade in the global property market to be tough,” said Grosvenor chief executive Mark Preston.
“I do not see it (European retail) picking up or deteriorating in particular this year.”
Despite falling returns, the company added 6.7 per cent to its value in 2011 as property values extended a recovery after the credit crisis. Net assets were £2.9bn, versus £2.78bn in 2010.
Like other developers, Grosvenor will increase the amount of high-end residential schemes it does versus offices and shops, Mr Preston said.
Advertisement
Hide AdAdvertisement
Hide AdValues for the most expensive London homes have risen 44 per cent in the past three years on the back of strong overseas demand from buyers looking to shield assets from global economic volatility, consultancy Knight Frank said.
Outside Grosvenor’s historic London estate, which it has owned for more than 300 years, the company has investments in Brazil, China and North America as well as an international fund management business. It has offices in 18 cities globally.