Grosvenor’s UK and Ireland profit dips
Grosvenor has reported a total return of 0.3% in its UK and Ireland business in 2016, down from 10.7% the year before, as profits fell by 4.9% to £79.2m.
Overall total return was 8% – down one percentage point from the year before.
The company said the results were ahead of expectations, partly because of the fall in the pound and a strong performance in its US and Asia Pacific businesses.
Grosvenor has reported a total return of 0.3% in its UK and Ireland business in 2016, down from 10.7% the year before, as profits fell by 4.9% to £79.2m.
Overall total return was 8% – down one percentage point from the year before.
The company said the results were ahead of expectations, partly because of the fall in the pound and a strong performance in its US and Asia Pacific businesses.
It generated total returns of 6.4% in its US portfolio and 6.3% in Asia Pacific. The company also saw returns of 12.7% in indirect investments, which offset a weaker UK market.
Performance in 2017 will likely be “significantly weaker”, Grosvenor said, because of limited room for value appreciation and a reduction in revenue profit following further disposals.
Total assets under management in 2016 were £12.7bn, down from £13.1bn in 2015, but Grosvenor had a development pipeline of £6bn as of the end of last year.
Mark Preston, chief executive of Grosvenor, said: “With just under half of our assets outside the UK, our strategy of international diversification has yet again helped to deliver solid returns of 8%.
“Investor and occupier unease before and after the UK’s EU referendum, and the imposition of higher stamp duty on purchases, contributed to a slowdown in the London residential market, which we planned for.
“We will continue with our long-term approach of investing in vibrant commercial and residential projects with the aim of delivering both good returns and making a positive impact on their communities.”
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