'Super-prime' property sell-off by Grosvenor
Wednesday 30 April 2014
Grosvenor Estates, the Mayfair landlord controlled by the Duke of Westminster, has sold off hundreds of millions of pounds worth of "super-prime" property in London because of fears about the capital's overheating market.
The company posted a third successive year of record profits in 2013 as it took advantage of surging prices to sell off £240m of super-prime developments, typically defined as homes with an asking price of at least £5m. Profits from its UK and Ireland arm more than trebled as a result to £117.5m.
Its chief executive, Mark Preston, insisted that the company was "not calling the top of the market".
But he added: "It's certainly true that part of the reason for making the sales we did last year was because we had a concern about the level of pricing and its sustainability, and the extent to which it was going to continue… Inevitably one has a concern over what happens next."
The move follows research from agents Knight Frank which showed overseas demand pushing up London's luxury-home prices 68 per cent since 2009, compared with a 49 per cent rise across greater London measured by Nationwide.
Grosvenor's sell-offs included 11-15 Grosvenor Crescent, which it sold in December last year for £114m to private developer Wainbridge. The company pumped sale proceeds into rental schemes in more-affordable areas of London such as Bermondsey.
Mr Preston added: "The picture for us looked increasingly risky. One of the things that should concern us all in London is the lack of supply of residential property that can meet the needs of people who want to live and work in central London and cannot afford or choose not to put most or all of their savings into a house."
The company traces its history back to 1677, when the present Duke's ancestor, Sir Thomas Grosvenor, married Mary Davies, who had inherited 500 acres of land north of the Thames to the west of the City of London.
The Grosvenors developed the northern part – now known as Mayfair – in the 1720s before moving south to Belgravia.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...