Howard de Walden Estates, which owns the majority of London’s Marylebone, made an £18m profit from the sale of flats and houses to leaseholders during its last financial year.
The sum, revealed in accounts just filed for the year ended 31 March 2007, contributed to a record pretax profit of £45m, but means the family-owned company lost control of a number of freehold houses and long leasehold flats under enfranchisement rules.
Almost all of the £18m was reinvested in or around the estate, which covers 90 acres, including Marylebone High Street and Harley Street, W1.
Chief executive Toby Shannon said: “We currently lose less than 10 freeholds a year, but we do lose flats through lease extensions. However, 25% of our income continues to come from residential – mostly from assured short-term tenancies – and we believe this percentage will stay relatively stable.”
Profit from rental income for the year was £27.4m. This was a like-for-like increase of 13%, driven by lettings at several new schemes. The highest rent is now £75 per sq ft, up from £60 per sq ft a year ago. Other successes included the prelet of 26-27 Aybrook Street, W1, to business innovation company ?What If!.
Howard de Walden paid dividends of £17.2m, which was double the 2006 payout. The highest paid of its 12 directors, who include Shannon and chairman Peter Barton, received £512,000 last year.
