The boss of Grosvenor expects a tough year ahead for real estate values but said the challenges will provide “opportunities for the long-term investor” as he set out plans to plough more money into industrials, student digs and life sciences space.
Announcing the group’s 2022 results, chief executive Mark Preston (pictured) said its focus on property, food and agriculture technology will “stay the course”, adding: “Property as a tangible asset, and food as a basic human need, make for defensive investment options in a low-growth, inflationary world.”
The group posted revenue profit from its urban property portfolio of £52.7m, down by roughly a half on 2021’s £99.7m, with a fall in North America offsetting a rise in the UK. A total return of 3.5% compared to 5.2% a year earlier. The company described the results as a “solid performance in the face of challenging economic conditions”.
The group now expects its diversified property Investments business to double in size to £1.5bn of equity over the next five years as it expands in industrials, logistics, student housing and life sciences.
Preston said: “Our urban property, food and agtech and rural estates activities all faced challenging economic conditions yet delivered a solid overall financial performance in line with our expectations and strong examples of environmental and social benefit.
“Our established strategy of international diversification, the enduring appeal of the quality of our properties and destinations, alongside our ability to time a slowdown in our property development pipeline with falling valuations and to adjust to new post-Covid work and consumer trends played a key part in helping to balance our property returns.”
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