Landlord warns of property slowdown in the capital
Friday 30 May 2014
Chelsea and Knightbridge’s aristocratic landlord Cadogan Estates became the latest company in the sector to warn that growth in London’s runaway property market was set to cool off.
Cadogan, chaired by Viscount Chelsea, is the second largest of the capital’s four “Great Estates”, behind the Duke of Westminster’s Grosvenor Estates, owning 93 acres worth £4.5bn in London’s most exclusive district including Sloane Square.
The company generated a record £121.7m last year by selling the freeholds on 152 flats to leaseholders, making profits of £26.2m above 2012 valuations,
The overall value of its residential properties jumped more than 13 per cent last year, reflecting the “exceptional strength” of the prime property market according to Cadogan’s annual report.
It added: “After a period of such strong growth in values it would not be surprising if there was something of a pause, but the underlying factors seem well set to remain supportive.”
The comments from Cadogan follow recent concerns from Grosvenor over prices at the super-prime end of the London market after it offloaded £240m of properties last year.
Cadogan’s report added: “As always there are some uncertainties; the May 2015 general election and the possibility of a Mansion Tax may dampen the residential market, the type of factors which attract international people and capital may change.”
The boost from freehold sales was a key factor behind an annual rise in pre-tax profits to £73.8m, up from £57.3m in 2012. But Cadogan is also generating higher rents from a roster of new retail tenants including J Crew and Tom Ford, pushing up the value of its retail estate by more than 16 per cent.
“The continuing growth in retail values reflected good levels of occupier demand, particularly from international retailers, and a strong investment market for central London retail properties,” the report said. “The wider rise in domestic business confidence should help to ensure that the prospects for letting and for growing rents across the commercial sectors remain excellent.”
Cadogan stretches back to when Sir Hans Sloane bought the manor of Chelsea in 1712. One of his two daughters married into the Cadogan family.
Sales of the tablet are set to fall again say analysts
World's most lethal spider found under a bunch of bananas
British supermodel and hitmaker join forces to launch a 'huge song'
Rumours that the star wants to move on to pastures new
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 3 Star Wars memorabilia called a 'bit of plastic' on Antiques Roadshow by Fiona Bruce valued at £50,000
- 4 Meet Thea, Norway's 12-year-old child bride
- 5 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
Kobani: Fifteen-year-old boy taken captive with suspected jihadist 'shot in the head by militant group' fighting against Isis
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
Isis fighters 'crucify' 17-year-old boy in Syria
Oscar Pistorius sentencing: Olympic star must serve 10 years, prosecutor urges
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...
£50000 - £55000 per annum + bonus + benefits: Ashdown Group: IT Relationship M...