Revealed: Prince Charles's secret property deals - including £38 million industrial carbuncle

Exclusive: Duchy estate bought Milton Keynes supermarket depot despite his famously forthright views on preserving traditional architecture and countryside

Prince Charles, renowned for his aversion to “monstrous carbuncle” buildings, has spent £38m on an industrial depot in Milton Keynes as part of a £102m series of confidential property deals, The Independent can reveal. The purchase of the vast supermarket warehouse through his estate – one of the single largest  acquisitions by the Duchy of Cornwall in its 670-year history – was  completed 18 months ago but has been kept from being made public.

A recent judicial ruling declared the Duchy to be a “public body” potentially liable to freedom of information rules.

But Clarence House has repeatedly refused to disclose any details of the expensive acquisition due to what the Prince’s officials said was the Duchy’s “private” status.

The Prince bought the sprawling grey warehouse complex in Milton Keynes from an Anglo-Indian property fund, The Independent has established. His tenants are Waitrose, who are using the depot as a lorry distribution hub. The deal offers a glimpse into the hard-nosed business ethos of the Duchy, established in the 14th century to provide an income for the Prince of Wales and his heirs, as well as the multiple layers of confidentiality and opaque procedure that govern the Prince’s commercial dealings.

Under an arrangement which is now being scrutinised by MPs, the Duchy is exempt from capital gains and corporation tax, saving it millions of pounds a year. Charles voluntarily pays income tax.

An investigation by The Independent has revealed that the Duchy, which is one of Britain’s largest private estates and owns more than 50,000 hectares of land, conducted property transactions worth at least £102m between 2009 and last December.

Any sale or purchase by the Prince worth more than £500,000 must be approved by the Treasury.

The Duchy’s holdings of land and property form the bulk of its assets, worth £693m, and stretch across 23 counties, including most of the Scilly Isles, Dartmoor Prison, the Oval cricket ground in central London, a Holiday Inn in Reading and the Prince’s private homes such as Highgrove. To this extensive list has now been added property title BM191066, otherwise known as the Waitrose distribution centre in Brinklow, Milton Keynes, whose new owners are listed by the Land Registry as “His Royal Highness Charles Philip Arthur George, Prince of Wales, Duke of Cornwall and Rothesay, Earl of Chester and Carrick, Baron of Renfrew, Lord of the Isles and Great Steward of Scotland”, and the Duchy. The sale price was £38,385,500.

Like all other significant Duchy transactions, the deal in November 2011 with Indian property fund Meghraj Properties had to be approved by the Lord Commissioners of the Treasury, an ancient post held by Government whips.

The depot, built in 1993 to withstand 20 million lorry journeys over its lifetime, sits awkwardly with the heir to the throne’s well-publicised love of traditional architecture along with his emphasis on rural life and environmental sustainability.

The purchase of the 396,000 sq ft warehouse is not the first link between Charles and the John Lewis Partnership supermarket. A previous deal between the Duchy and Waitrose in 2009 saw it take over the once-troubled Duchy Originals organic food brand, which now generates more than £1m a year for the prince’s charities.

When The Independent yesterday approached Clarence House with evidence of the warehouse purchase, it insisted there was no connection with the Duchy Originals tie-up, adding it was a “coincidence” that Waitrose was the tenant of the industrial complex.

The revelations come at an uncomfortable time for the Duchy, which is facing a private members’ bill in the House of Lords demanding that its structure be radically overhauled and its surplus income – £18.3m last year – be distributed to Cornwall rather than to the heir to throne. The bill’s sponsor, Labour peer Lord Berkeley, says the Duchy is a “feudal anachronism”.

The day-to-day management of the Duchy, including investment decisions on commercial property such as the Waitrose warehouse purchase, is carried out by a professional managerial team. But it is widely known that Prince Charles takes a close personal interest in the running of the estate. In many ways, the estate, which transfers its handsome surplus every year to the heir to the throne to form the bulk of his income, is a paragon of success. Despite the global downturn, the Prince has defied the prevailing economic winds to grow the Duchy’s income every year since at least 2008 – to £26.5m last year. His estate’s total value has risen by 15 per cent to £764m.

Charles voluntarily pays income tax on the income he receives from the Duchy (last year he paid £4.5m to the tax man from incoming funds of £18.3m). He uses the money to fund himself and the Duchess of Cornwall, the Duke and Duchess of Cambridge, Prince Harry, a sizeable staff and his charitable activities.

But while the Duchy has been slickly managed, a growing number of critics say it has existed for too long in a constitutional no-man’s land where it discharges the duties of a public body, for example running the harbour authority on the Scilly Isles, and is subject to the financial scrutiny of Government whips, yet maintains it is a “private estate”. One benefit of this hybrid status is that the hereditary holding is exempt from both corporation and capital gains tax. The situation, which Clarence House insists is valid because the Duchy is “not a separate legal entity for tax purposes”, has led the powerful Commons public accounts committee, which is also investigating the tax affairs of Google and Starbucks, to demand answers from Treasury ministers as to whether the Prince’s exemptions are justified.

The Duchy is also fighting a separate attempt to force it to be more open about its workings. The Prince’s officials lost an important case before the Information Rights Tribunal, which after a three-year legal battle ruled that his estate was a “public authority” in performing its “primary function” to provide an income for the heir to the throne.

The landmark ruling could make the estate subject to the Freedom of Information Act. The Duchy is appealing. A spokeswoman said: “We do not agree that the Duchy performs functions of public administration. Hence we are appealing the ruling.”

Lord Berkeley, who lives in Cornwall, said there was a “conspiracy of silence” surrounding the status of the Duchy and it was time for a debate about its future: “The Duchy is a complete anachronism. It is feudal and I suspect many of those who work for it would say so if they felt able. It vacillates between being a private and a semi-public organisation according to its best advantage and yet there is no debate about how it should be best managed. It would seem to me that the Duchy would be a far better situation if it was turned into a public trust for the benefit of the people after which it is named.”

In a statement, a Duchy of Cornwall spokeswoman said: “The Duchy of Cornwall is a private estate, not a public body and is not funded by the taxpayer. The Prince of Wales chooses to use his private money from the estate to pay for his public duties, as well as those of the Duchess of Cornwall, the Duke and Duchess of Cambridge and Prince Harry.

“He also chooses to pay income tax on the income generated by The Duchy. The Duke of Cornwall manages the estate for present and future Dukes, and for the wider benefit of tenants, communities and the environment.”

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
News
The data shows that the number of “unlawfully” large infant classes has doubled in the last 12 months alone
i100Mike Stuchbery, a teacher in Great Yarmouth, said he received abuse
Arts and Entertainment
The starship in Star Wars: The Force Awakens
filmsThe first glimpse of JJ Abrams' new film has been released online
Sport
Rio Ferdinand returns for QPR
sportRio Ferdinand returns from his three-game suspension today
News
The Speaker of the House will takes his turn as guest editor of the Today programme
arts + ents
News
people

Watch the spoof Thanksgiving segment filmed for Live!
Sport
Billy Twelvetrees will start for England against Australia tomorrow with Owen Farrell dropping to the bench
rugbyEngland need a victory against Australia today
Arts and Entertainment
The cover of The Guest Cat – expect to see it everywhere
books
Sport
Tyson Fury poses outside the Imperial War Museum in south London ahead of his fight against Dereck Chisora
boxingAll British heavyweight clash gets underway on Saturday night
News
i100 Charity collates series of videos that show acts of kindness to animals
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Opilio Recruitment: QA Automation Engineer

£30k - 38k per year + Benefits: Opilio Recruitment: An award-winning consume...

Opilio Recruitment: UX & Design Specialist

£40k - 45k per year + Benefits: Opilio Recruitment: A fantastic opportunity ...

Opilio Recruitment: Publishing Application Support Analyst

£30k - 35k per year + Benefits: Opilio Recruitment: We’re currently re...

Opilio Recruitment: Digital Marketing Manager

£35k - 45k per year + benefits: Opilio Recruitment: A fantastic opportunity ...

Day In a Page

Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

Christmas Appeal

Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

Is it always right to try to prolong life?

Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

What does it take for women to get to the top?

Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

Knitting pretty: British Christmas Jumpers

Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

French chefs campaign against bullying

A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

Just what you need on a New Year hangover...

Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
Cuba set to stage its first US musical in 50 years

Cuba to stage first US musical in 50 years

Claire Allfree finds out if the new production of Rent will hit the right note in Havana
Christmas 2014: 10 best educational toys

Learn and play: 10 best educational toys

Of course you want them to have fun, but even better if they can learn at the same time
Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

Paul Scholes column

I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

Lewis Moody: Lancaster has made all the right calls – now England must deliver

So what must the red-rose do differently? They have to take the points on offer 
Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game