Cadogan Estate posted a record operating profit of £82.8m in 2015, the firm revealed in its annual report this week.
The Chelsea landlord’s profits were up by 14.3% from £72.4m in 2014, while its property valuation rose by 11.4% to £5.8bn.
Retail and office values at the Cadogan Estate grew by 20.8% and 20.1% respectively over the year, while its residential portfolio increased in value by only 0.8%.
The completion of 42,000 sq ft of office space on 131 Sloane Street, SW1, (pictured) and the finished refurbishment of offices at 10 Duke of York Square, SW3, helped bolster the valuation.
Six retail units also opened at 131 Sloane Street, where luxury retailer Boutique 1 leased 11,500 sq ft earlier this year.
Total returns from the estate rose to 17.7%, up from 16.9% in 2014, but below the five-year annual average of 19.1%. Rental income also grew by £10m, hitting £130m at the end of December.
Hugh Seaborn, chief executive of the Cadogan Estate, said: “Demand remains healthy for retail space, with luxury brands seeking larger shops, which they transform creatively, to deliver an exceptional experience that cannot be replicated online.”
Speaking about the office sector, he added: “We’ve deliberately timed the improvement of a lot of the office stock for last year and we’ve let it up.
“We’ve now got virtually no offices available, and that’s set us fair for the next few years,” he added.
The report also showed that the company’s highest-earning executive was paid £988,000 last year, although Cadogan declined to reveal their identity.
In the coming year, Cadogan has planned to develop the whole of Sloane Street with the Royal Borough of Kensington and Chelsea to create “an elegant environment”.
Seaborn said: “We’ll look at improving everything that your eye rests on, from street furniture to road surfaces to footpath materials to make sure it is of a style and quality that reflects what an elegant and internationally famous street Sloane Street is.”
| Cadogan Estate results | ||
|---|---|---|
| Item | 2014 | 2015 |
| Gross rent | £120m | £130m |
| Operating profit before capital items | £72.4m | £82.8m |
| Gross property value | £5.2bn | £5.8bn |
| Net assets per share | £30.5 | £35.7 |
| Total return | 16.9% | 17.7% |
| Balance sheet gearing | 16% | 13.7% |
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